Sections: s44 (4)

Lodgement category: ELM

Circumstances/Transactions:

No duty is payable for a declaration of trust over dutiable property made solely because of the breakdown of a marriage or domestic relationship where:

  1. the person declaring the trust is a corporation
  1. the only beneficiaries of the trust are:
    1. a party or both parties to the marriage or domestic relationship, or
    2. a dependent child of a party or both parties to the marriage or domestic relationship, or
    3. a combination of the parties to the marriage or domestic relationship and a dependent child of theirs;
      and
  2. at the time of the declaration of trust the dutiable value of the trust property does not exceed the value of the interests of the parties to the marriage or domestic relationship in the corporation;
    and
  3. as a result of the declaration of trust, the value of the interests of the parties to the marriage or domestic relationship in the corporation is reduced by the same amount as the dutiable value of the trust property.

NOTE: Section 44(4) does not apply if the corporation was holding its interest in the property as trustee of a trust.

Evidence:

Where applicable, the following requirements must be produced. If any are not applicable, please explain why.

  1. The original executed trust deed ("the trust deed").
  2. A copy of the historical certificate of title.
  3. A historical ASIC search of the transferor corporation.
  4. Either:
    1. A copy of the latest balance sheet of the corporation showing this property listed as an asset of the corporation, or
    2. A copy of the asset register of the corporation.
  1. A statutory declaration by an authorised officer of the trustee corporation which:
    1. States the capacity of the person making the declaration.
    2. States the capacity in which the corporation is holding the property.
    3. Names the parties to the marriage or domestic relationship.
    4. States whether the declaration of trust is made solely because of the breakdown of a marriage or domestic relationship.
    5. Confirms that, where any of the beneficiaries of the trust are a child of a party or both parties to the marriage or domestic relationship, those children are "dependent children" as defined in section 44(7) of the Duties Act 2000,
    6. States whether any of the beneficiaries will be accepting the property as trustee of a trust. If so, state the full name of the trust and provide a copy of the complete trust deed.
    7. Addresses the following if there are additional shareholders of the trustee corporation, other than the parties to the marriage or domestic relationship: 
      1. Explains how the value of the beneficiaries' interest in the corporation have been reduced, either by reference to the number of shares held or the value of such shares (i.e. by cancellation of shares, reduction of capital).
      2. Identifies whether any prior distributions of property have been made to the shareholders of the corporation, and if so identify the assets transferred and to whom.

NOTE: If the balance sheet or asset register does not sufficiently identify all the assets and liabilities of the corporation and their respective market values (not book values) you must provide valuations for each asset.

Please note:

For all transactions involving the acquisition of property in Victoria, each transferee must complete and lodge a purchaser statement in addition to any other required transfer and evidentiary documentation.