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We have a commercial property with two warehouses on the property.

 
Sydney-Lawyer's Avatar
  • Answered by:Sydney-Lawyer
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Customer Question

We have a commercial property with two warehouses on the property. They are owned by a family trust comprising of two family trusts. They are set up as two strata titled unit each having their own separate rates, water and power. We would like to transfer them so each family trust has a unit each. How do we do this and will we have to pay stamp duty on them to transfer them.

 

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State/Territory: Northern Territory

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Submitted: 280 days and 11 hours ago.
Category: Australia Law
Value: AU$93
Status: CLOSED
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Expert:  Sydney-Lawyer replied 280 days and 11 hours ago.

Good Afternoon,


Are the 2 family trust beneficiaries of the main family trust that owns the property?

Is the trustee of the main family trust the phone trustees the other family trusts?

Customer replied 280 days and 10 hours ago.

The property is in the name of both family trusts.

I dont understand the next question.

We have a partner ship of two separate family trusts.

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Expert:  Sydney-Lawyer replied 280 days and 10 hours ago.

Good Afternoon,


In your initial question it appears there is a main family trust with 2 other family trust attached to it so in total there are 3.

So can you tell me are the 3 family trusts or 2? And then can you tell me how the properties around between all the trusts?

Customer replied 280 days and 10 hours ago.

There are only two family trusts and the property is owned by both.

we want to separate the two into individual family trusts and give each one a warehouse.

Accepted Answer

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Expert:  Sydney-Lawyer replied 280 days and 9 hours ago.

Good Evening,


In this case it would be a sale of a half share from each family trust to the other.

The process you would need to follow, is to have both properties valued and stamp duty would be paid on the harsher transferred to each trust.

If they are investment properties there are also capital gains implications.

If you are able to show that each trust is holding its share of the property and trust the other you may be able to transfer without stamp duty and capital gains but this will all be dependent on what the trust deeds say.

But generally you will need to pay stamp duty on the half share transferred from one trust to the other and capital gains tax if it applies.

If there is no bank involved and the properties are mortgage free, all that is required is for a transfer of land to be prepared and evaluation by a registered valuable for each property.

You will pay stamp duty on the transfer and then launch it with the Department of lands and it will all be done.

If there is a bank involved you will need to get the banks consent, but if they do not approve it will not be possible.

I hope this is of assistance. If you have any other questions please do not hesitate to contact me.

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Expert TypeSolicitor
Category: Australia Law
Pos. Feedback: 96.1 %
Accepts: 16739
Answered: 7/16/2012

Experience: BEc Dip Ed, Dip Law (SAB) MTax (UNSW)

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