Company as Trustee for a Trust and the Contract of Sale

Viewing 5 posts - 1 through 5 (of 5 total)

Danielle
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@dgirl
Join Date: 2012
Post Count: 43
February 26, 2013 - 9:36 am
What is the standard contract of sale wording when a company as Trustee for a trust is involved? Would it be something like:
'ABC Pty Ltd in its capacity as the trustee of the ABC Family Trust'
Or should it read something different?
I recall reading that it can vary state to state, perhaps Terry mentioned it elsewhere…
RPI
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@rpi
Join Date: 2012
Post Count: 308
February 26, 2013 - 10:51 am
Hi, it depends
You could have
ABC Pty Ltd atf ABC Family Trust
ABC Pty Ltd as trustee for the ABC Family Trust
ABC Pty Ltd as trustee under instrument
ABC Pty Ltd (as ABC Pty Ltd is the legal entity that owns the property, although the equitable owner is the trust, however some documents required you to indicate if the company is acting in the position of trustee)
Most of the equitable stuff is moot now for trying to not disclose the trust as the beneficial owner as the trust requires an ABN and the ABN will be "the trustee for the ABC family Trust".
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Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
February 26, 2013 - 11:12 am
Yes, really there is no need to document the trust at all. But it may be a good idea to put XX ATF YYY.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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wilko1
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@wilko1
Join Date: 2010
Post Count: 510
February 26, 2013 - 11:54 am
Just sign it and or nominee and get your solicitor or conveyancer to nominate which company/trust you select. That way it's also their fault for any wording errors.
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
February 26, 2013 - 12:58 pm
wilko1 wrote:
Just sign it and or nominee and get your solicitor or conveyancer to nominate which company/trust you select. That way it's also their fault for any wording errors.
Get some legal advice first.
This could result in paying stamp duty twice in some states, especially if the trust is not in existance at the date of contract.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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