One of the hot topics in trusts in the last few years has been using splitting or cloning as a solution to dividing control of family discretionary trusts among the next generation. It is important to understand what is being done, how and when and why it works from both a practical and tax view and what are the pitfalls. This presentation focusses on:
- practical reasons for splitting or cloning
- can you effectively ‘divide’ a trust’s assets under trust law?
- tax outcomes for CGT assets, trading stock and plant and equipment
- stamp duty issues
- family trust election constraints
- practical issues.