Stamp Duty Exemption For Transferring Property to a Spouse
In NSW, the law allows a transfer of interest in land from one spouse to another without the burden of thousands of dollars of stamp duty fees. As the principal place of residence is usually the main asset in any family, it is paramount to ensure that it is secure and protected from claims presently and in the future.
Consider the following scenarios:
Many directors are faced with the risk of losing their principal place of residence in the event of bankruptcy. This risk can be minimised by arranging for their partner to hold a 50% interest in the family home as either a joint tenant or tenant in common in equal shares.
This strategy will ensure that at least 50% of their family wealth remains out of the hands of administrators in the event of bankruptcy or liquidation.
A typical modern blended family faces a great deal of uncertainty about what would happen to their interest of each spouse in the event of separation or death.
If a partner is noted as the co-owner of the family home, that partner can be confident that their interest will automatically be transferred to the surviving partner in the event of their death.
Alternatively, a person may wish to transfer their interest in a family home to their new partner as a tenant in common in equal shares. This would mean that their 50% interest in the property can be distributed to whomever they desire through creating a Will with their last testamentary wishes.