Property as gift from parent?

joannatan on 08/06/2015 - 15:26

Hallo Friend

I have question from friend of mine that currently lived on his parent property. As the parent getting old, and the parent doesn't want having any conflict after they passed away, so the parent decided to give this property to his son. The property has no mortgage on the title.

He asked me what is the best and cheap option for his father to transfer the title to him. As currently, he was advised by his accountant that he need to pay stamp duty etc around 4-5% of the market value.

I hope you guys can help with some answer :) Or may be can give some individual with expert in tax minimization. Thanks

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Comments

  • spackbace on 08/06/2015 - 15:32
    +1

    Right a will, put the property in the will to your friend?

  • baker bob on 08/06/2015 - 17:32
    +1

    As the Accountant would have no doubt advised, the gifting of property is a capital gain event and the ATO will view the consideration (which is what you pay stamp duty on) to be the market value of the property.

    Get a good solicitor and write an air tight will (none of those rubbish "do your own will" things). Cheaper than paying stamp duty.

  • GnarlyKnuckles on 08/06/2015 - 23:11
    +2

    You guys seem to have missed this bit of the OPs post:

    "… and the parent doesn't want having any conflict after they passed away"

    To me this implies that it's quite likely that someone (or various people) might attempt to contest the will, if the property was left to just this one person. Could be a gold-digging floozy, a jaded sibling or two, etc. etc.

    So the parent wants to officially transfer ownership while they are still alive, to avoid any possibility of this happening. Pretty wise of the parent really; I actually hate the whole concept of "contesting a will", except where there's some suggestion that the deceased might have been coerced or was not of sound mind when they made the will.

    Is sommat like this the case OP?

    • joannatan on 09/06/2015 - 00:22

      Spot on mate. As the parent has allocate each kid with one property, to ensure no more conflict. The parent is not really old still around 65, but they just want peace of mind for each kid having one property.

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