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Gifting private trust units where the only trust asset is the pensioner's principal home

Gifting of trust units where only trust asset is pensioner's principal home

If a veteran who would like to:

  • gift money to a unit trust of which they are a 100% attributable stakeholder,
  • have the trust use all that money to purchase their principal residence,
  • have the house purchased be regarded as adequate consideration for the price paid, and
  • have the principal residence be the only trust asset,

after 1 January 2002, the deprivation rules do not apply. The house would be an asset of the trust unless the veteran can reasonably establish security of tenure. If the trust subsequently disposes of trust units to a non-attributable stakeholder, a disposal of assets would have occurred subject to allowable gifting limits and security of tenure may need to be re-examined.     

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Units in relation to a trust, include a beneficial interest, however described, in the property or income of the trust.