Published on 06 May 06
by SOUTH AUSTRALIAN DIVISION, THE TAX INSTITUTE
One of the hot topics in trusts in the last few years has been using splitting or cloning as a solution to dividing control of family discretionary trusts among the next generation. It is important to understand what is being done, how and when and why it works from both a practical and tax view and what are the pitfalls. This paper focusses on:
- practical reasons for splitting or cloning
- can you effectively ‘divide’ a trust’s assets under trust law?
- tax outcomes for CGT assets, trading stock and plant and equipment
- stamp duty issues
- family trust election constraints
- practical issues.
Current at 26 May 2009
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