Something is received in return, but its value is less than the value of the property given.
If something of lesser value is given in return for a gift, the value of the gift is the difference between the two values. In the context of trusts, these items can all be gifts:
Transfers of any items (for example, company shares or land).
Any form of payment.
Creation of a trust.
A forgiveness or reduction of debt.
Allowing a debt to remain outstanding so that it can't be collected by normal legal action.
If you propose to make a gift to a trust, please contact us to discuss the implications. It is important to take into consideration what the trust, and the gifts to the trust are designed to achieve as part of a long-term strategy.
The government abolished gift duty for dispositions of property made on or after 1 October 2011. This means that:
Gift duty will not be payable for dispositions of property made on or after 1 October 2011
Gift statements will not need to be filed for dispositions of property made on or after 1 October 2011
However, gift duty and gift statements will remain due for dispositions of property made prior to 1 October 2011
Please be aware that there is a $6,000 annual gifting limit for rest home subsidy purposes.
For more information on gifting please give us a call.