Family home into a family trust?

David wants to know how one goes about moving the family home into a family trust.

A small house constructed from 50 dollar notes

Our no-nonsense planner Maurice Patane answers David’s question of how one goes about moving the family home into a family trust in retirement.

Q. David

I am wondering how one goes about moving the family home into a family trust. We have four children and would like to move the family home into a family trust. Are you allowed to do this once you are in retirement?

A.

There are no age restrictions on setting up a family trust. So it would be possible to set one up, even if you are retired, and transfer the family home into it.

Family trusts are used for a variety of reasons, including protection of vulnerable beneficiaries, estate planning and tax planning. However, before you do such a thing, it is important to seek advice from a qualified professional.

It may be possible to achieve your intentions in a more effective manner through other simpler strategies. Alternatively, it may be that a family trust may not be the solution to your particular problem. That’s where the help of a financial planner could assist you with your options.





    COMMENTS

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    Thinker
    7th Jan 2016
    9:43am
    in NSW if you transfer to trust, you may have a liability to land tax
    MICK
    7th Jan 2016
    10:45am
    And probably state Stamp Duty on the transfer plus Capital Gains Tax down the track. A double edged sword!
    MICK
    7th Jan 2016
    10:44am
    Looks like the response is touting for business. NOTHING of any use in this 'article'.....or is it a paid advertisement?
    Anonymous
    7th Jan 2016
    6:09pm
    Yeah, mick, I think this guy (Mr. No-Nonsense) pays for the space.

    7th Jan 2016
    11:40am
    In some homes there IS NO TRUST, just like with some financial planners.
    Peterrj
    9th Jan 2016
    9:22am
    Stop it Fast Eddie, you are too good with your postings!!!!
    Funny face
    7th Jan 2016
    11:56am
    I have a daughter with multiple sclerosis. Most if the house is in my name ( which means reduced pension even though it costs me money!) we have tried ways to transfer house to her name ( it was suggested when my husband passed but no one realised laws change abd no one was in the frame of mind to think about it!) I am getting more infirm and wish to protect my daughter. Any suggestions?
    Blossom
    7th Jan 2016
    6:44pm
    I don't know what the laws are in all states. In SA if a house itself is in joint names, if one person passes away, the property is automatically transfered over. I can't remember what taxes apply at that time.
    An advisor at a Centrelink office amy be able to help you....but you will need to make an appt. On occasion I have received information to my benefit. It doesn't matter whose name the electricity, gas and phone bills are in. It is only Govt. Rates and Taxes.
    Adrianus
    9th Jan 2016
    6:41pm
    Blossom that could be the case with Joint tenancy ownership but may be different under a Tenants in Common arrangement unless stated otherwise?
    Radish
    8th Jan 2016
    2:36pm
    If a person moves all their assets into a family trust are they assessable if someone wants to qualify for a pension??
    Peterrj
    9th Jan 2016
    9:28am
    Because it is no longer 'your family home' as it belongs to the Trust!

    And Capital Gains may be payable for the same reason!!!!

    The 'no no nonsense' answer seems to be just that 'nonsense'!
    Adrianus
    9th Jan 2016
    6:38pm
    Radish each year the ATO want to know where the Trust's distributions go and I suppose Centrelink is no different. It could be a really good way to get your home assessed and probably lose your pension? At the moment homes are not assessed.


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