Probably depends on the context of the rulings.
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Hi @Fergus007,
The position on whether multiple beneficiaries can be absolutely entitled to the same piece of real estate is a question of trust law rather than tax law. We can't conclusively determine trust law matters, as these depend on the specific terms of the trust deed and the legal effect of trustee resolutions.
While ATO rulings discuss the concept of absolute entitlement, they don’t establish a blanket rule that multiple beneficiaries can never be absolutely entitled to the same asset. How the principle applies depends on the legal position under trust law.
Best to get legal advice to understand if your trust allows more than one person to fully own the property. They can also look at your trust deed and explain how it works, so you can understand the tax outcome.
Thank you. That answers my question. The Deed says that each beneficiary owned 50% of the Trust's assets, including the single residential property. The beneficiaries could also not instruct me individually to deal with Trust property.
In my reply, I should have said the beneficiaries were entitled to 50% of the Trust's assets not owned.
The draft ruling on AE and CGT was 2004/025.
Hi Bruce,
Sorry, I read the draft ruling TR 2004/D25. I was directed to this when I inquired about Absolute Entitlement.
This document is a draft for industry and professional comment. As such, it represents the preliminary, though considered views of the Australian Taxation Office. This draft may not be relied on by taxpayers and practitioners as it is not a ruling for the purposes of Part IVAAA of theTaxation Administration Act 1953 . It is only final Taxation Rulings that represent authoritative statements by the Australian Taxation Office.
As KaraATO says, you really need legal advice if you want to there.
Yes, I have received specialist legal advice on absolute entitlement, and its relevance to the specific trust Deed. The ATO's draft ruling, as well as legal cases, were cited in the advice .