Hi - I am potentially going to have a liquidity event when I sell some shares that are owned by my Family Trust. If this event happens, a reasonable amount of money will be put into my trust and I was wondering if I can use this money to purchase a house (directly under the trust and with trust funds)? I plan on living in the house in question and want the house in the trust itself.
A lot of people will scream "not to do it" as you are in a tax forum. There is no upside (on tax) at all if you intend to live in there.
You can have some level of asset protection. This is the main upside.
You will loose land tax exemption and CGT exemption. You also need to restrict the beneficiary of the trust to tax resident only, unless land tax surcharge may kick in.
However, once you change this to an investment property, you can distribute income in a discretionary manner to your family. All cost while you are living in it is capitalised and form part of your cost base.
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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