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JohnA(Newbie)Newbie
5 Sept 2024

I am about to inherit shares from my father. Now I have opened up a new family trust having a corporate trustee. Me and my wife are the only beneficiaries in the trust and directors of the trustee. I am the appointer.

My question is that can I perform Off market transfer of shares from my father's estate to the family trust without having any tax obligations? Trading platform (like commsec and so on..) allows this functionality (Off market transfer of shares) by charging a one-off fee by each stock. However, I am not sure regarding my tax obligations?

ATO states that "if the beneficial owner remains the same, a CGT event won't arise". Does it fit the above situation?



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1,154 views
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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
6 Sept 2024

My question is that can I perform Off market transfer of shares from my father's estate to the family trust without having any tax obligations?


No - that would be a CGT disposal.


Cost base depends on when your father acquired the shares.


ATO states that "if the beneficial owner remains the same, a CGT event won't arise". Does it fit the above situation?


Only if you were the only beneficiary of the trust, in which case there would be no point in moving the shares.

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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
6 Sept 2024

My question is that can I perform Off market transfer of shares from my father's estate to the family trust without having any tax obligations?


No - that would be a CGT disposal.


Cost base depends on when your father acquired the shares.


ATO states that "if the beneficial owner remains the same, a CGT event won't arise". Does it fit the above situation?


Only if you were the only beneficiary of the trust, in which case there would be no point in moving the shares.

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If I divert my inherited shares to my family trust do I trigger a CGT? | ATO Community