Transfer of Property to a Special Disability Trust and Stamp duty Exemptions

In NSW there is a stamp duty exemption for the transfer of property to a Special Disability Trust (SDT). This can apply for a declaration of trust s65(22)(a) or (b) Duties Act 1997 (NSW) or for a transfer to the trustee of an SDT s65(22)(c).  http://www8.austlii.edu.au/cgi-bin/viewdoc/au/legis/nsw/consol_act/da199793/s65.html

There are similar provisions in other states too, including:

Section 38A Duties Act 2000 (VIC)
http://www8.austlii.edu.au/cgi-bin/viewdoc/au/legis/vic/consol_act/da200093/s38a.html

Section 126A Duties Act 2001 (QLD)
http://classic.austlii.edu.au/au/legis/qld/consol_act/da200193/s126a.html

 Example

Homer has an investment property which he wishes to transfer to a special disability trust for his daughter who has a severe disability. Title is transferred from Homer’s name to that of a professional trustee and there is no stamp duty charged on this transfer.

Note that there are also CGT exemptions available too.

See:

Tax Tip 159: No CGT on Transfer to a Special Disability Trust            https://www.propertychat.com.au/community/threads/tax-tip-159-no-cgt-on-transfer-to-a-special-disability-trust.23076/

Discuss at

https://www.propertychat.com.au/community/threads/tax-tip-215-transfer-of-property-to-a-special-disability-trust-and-stamp-duty-exemptions.39643/

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