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Snapshot

  • When purchasing property in a trust, always keep good records of evidence of payment, e.g. bank statements, loan documents, payment for improvements etc.
  • Ideally the financials and balance sheets should clearly identify the property by name and/or title reference/s.
  • Consider adding the trust details to the contract.

Holly and Woody come to see you about updating their wills and discuss their estate planning. Both are in their early 80s and, thanks to Holly with her remarkable skills in day trading, have done very well in the share market since their retirements 10 years ago. As they live comfortably off the income from their share portfolio, they have decided to start rearranging some things for their sons Hughie and Harry.

Holly and Woody tell you that other than their main residence and their share portfolio, they own a beach house that was purchased in the late 70s.

You find out that the beach house is owned by the old family trust, of which Holly and Woody are the trustees. Given your recent experiences with Revenue NSW, you immediately think about the evidence you will require to prove that it is an asset of the trust.

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