I purchased a property in a small NZ town in 2006 but I have not lived in the property since 2012. I have been renting in either Auckland or London since and now I am considering purchasing in London, where I now live.
I am interested in transferring the asset into a discretionary trust in NZ, with myself and a class of beneficiary ‘The Children of Kieran’ as the beneficiaries. I understand this would not be considered a ‘life interest’ in the asset.
Is this a suitable and legal option for me, are there alternatives, anything I should be concerned about?
Kieran, the question of whether a discretionary trust is appropriate for you is potentially a complex question and one that is beyond the scope of this forum I’m afraid. I would suggest that you seek detailed professional advice based on a full picture of your circumstances. You would be correct in thinking however that a residential property in a discretionary trust will not count against a purchase you may make for the purpose of the 3% additional charge.Just be careful that the charge does not apply to the trustees on their acquisition of the property.