Use a Trust to Secretly Buy Your Neighbour's House!
Another gem, courtesy of Brett Davies, Law Central
QUESTION:
I want to buy a property from a person that knows me. I don't want that person to know that I am buying his home. I have a friend lined up to make the offer. I can't work out whether I need your Declaration of Trust or your Acknowledgement of Trust. The property is situated in South Australia.
ANSWER:
Declaration of Trust
You use a Declaration of Trust when you are about to buy something.
The Declaration of Trust is sometimes called a Bare Trust. It is one of the many types of trusts available in Australia. A Declaration of Trust is a legal structure that allows the division of the beneficial and legal ownership. It divides the asset into 2 parts: beneficial (real owner) vs legal/trustee (mere protector of the asset for the beneficial owner).
Note: For further information about real estate or conveyancing issues visit Lawyers Conveyancing
QUESTION:
I want to buy a property from a person that knows me. I don't want that person to know that I am buying his home. I have a friend lined up to make the offer. I can't work out whether I need your Declaration of Trust or your Acknowledgement of Trust. The property is situated in South Australia.
ANSWER:
Declaration of Trust
You use a Declaration of Trust when you are about to buy something.
The Declaration of Trust is sometimes called a Bare Trust. It is one of the many types of trusts available in Australia. A Declaration of Trust is a legal structure that allows the division of the beneficial and legal ownership. It divides the asset into 2 parts: beneficial (real owner) vs legal/trustee (mere protector of the asset for the beneficial owner).
Continue reading "Use a Trust to Secretly Buy Your Neighbours House"
Note: For further information about real estate or conveyancing issues visit Lawyers Conveyancing
3 Comments:
Your link to law central is hypocritical peter. firstly victoria has laws requiring any beneficary under a trust to be notified to the state revenue office. and also any scheme or arrangement that is designed to reduce stamp duty creates an offence for people involved.
as a constant critic of conveyancers and others who do "legal work" i.e. preparation of documents normally reserved to lawyers (19th Century thinking)
i am astonished you link to a web site where legal documents can be produced without reference to a solicitor. exactly what you critisise on this website.
your integrity is in question.
Who are you, and why do you choose to remain anonymous?
You will note that there is clear reference in the posting to the fact that the land is in South Australia.
All kinds of legal documents are available over the internet, Wills and Powers of Attorney can be purchased in post offices, and unqualified conveyancers can buy contract documents from the Law Institute of Victoria. There is not problem with people purchasing forms from Law Central.
The only problem regarding non-lawyers and legal documents is where the non-lawyer pretends to accept responsibility for legal advice given. For example, in Victoria a conveyancer will explain a client's legal position in relation to a real estate contract, but will not accept responsibility for the advice given.
The rule against lay-people selling "junk" legal advice is there to protect consumers. Unfortunately those who seek to profit from the ignorance of consumers simply regard such rules as an impediment to business.
As for hypocrisy, I would ask you why you choose to remain anonymous when you make such a vicious and public attack. You wouldn't happen to be a Victorian conveyancer would you?
Have a further scenario....Corporate trustee (of both a Family Trust and a SMSF) owns a parcel of land ATF the Family Trust but the LTO (lands Title Office) simply views the owner as the Trustee company. What if any are the implications in transferring the land from the Trust to the SMSF? The owner remains the same as the Trustee company but the land would benefit from considerable tax savings in the Super Fund?
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