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Australian Lawyers and Consultants

Trust Property Transfers

November 2003

The capital gains tax exemption for a "Main Residence" is available only for a property beneficially owned by the individual person(s) residing in the owner-occupied residential property. Clients who have, for asset protection reasons, held their home in a family trust may at some stage reconsider whether the asset protection benefit will be outweighed by the cost of additional capital gains tax and land tax to be incurred by the non-applicability of tax exemptions for property that is owned by a trust.

Baldwins can advise on numerous technical issues to be resolved in relation to any proposed transfer to a beneficiary, including such matters as advising on capital gains and balance sheet issues, land tax issues, stamp duty exemption availability and refinancing issues, and whether there are sufficient powers in the relevant trust deed to permit in specie distributions.

For further information, contact Joe Lederman at BALDWINS, Australian Lawyers & Consultants.

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