Resulting trusts

The items listed below are not links. They indicate where you are in this process.

• Start

• Intention

• Purchase money

• Conclusion

• No concession

A Declaration of Trust is a dutiable transaction (see Section 8(1)(b) of the Duties Act) and generally liable to full duty based on the dutiable value of the dutiable property, the subject of the trust.

However, where it can be established that the trust evidences the terms of a Resulting Trust, concessional duty may be applied. See Section 55(1)(a) of the Duties Act.

A Resulting Trust is established when property is acquired by someone other than the real purchaser (known as the apparent purchaser) to be held on trust for the person who actually provided the money for the purchase.

A trust can be declared in either a separate document or contained within a document, such as an agreement for sale. See Revenue Ruling DUT 31 for situations where this can apply.

Note: in the case of a resulting trust, concessional duty may also be applied where the property is subsequently transferred from the apparent purchaser (trustee) to the real purchaser (beneficiary). For more information refer to the related topic 'Transfer from apparent purchaser to real purchaser'.

More information