---
title: "Record the capital gains tax event when an asset is settled on or transferred to a trust"
url: "https://ailawframework.com/practice/trusts-and-estate-planning/record-the-capital-gains-tax-event-when-an-asset-is-settled-on-or-transf"
type: "task"
site: "AI Law Framework"
id: "A19-JU20261022-14"
practice_area: "Trusts & Estate Planning"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Record the capital gains tax event when an asset is settled on or transferred to a trust

> From the deed and the transfer, record the asset, the date the trust was created or the asset was transferred, and the event label from the published table. Do not calculate the gain.

Canonical page: https://ailawframework.com/practice/trusts-and-estate-planning/record-the-capital-gains-tax-event-when-an-asset-is-settled-on-or-transf  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Trusts & Estate Planning](https://ailawframework.com/practice/trusts-and-estate-planning.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From the deed and the transfer, record the asset, the date the trust was created or the asset was transferred, and the event label from the published table. Do not calculate the gain. |
| What the lawyer must review | The lawyer decides whether event E1 or E2 happened and works out the capital proceeds and the cost base. |
| Written for / versions | 1 jurisdiction versions below |

## Checking plan

**Source-by-source verification**

Match the transaction to event E1 or E2 and leave the figures to the lawyer.

- What the AI does: From the deed and the transfer, record the asset, the date the trust was created or the asset was transferred, and the event label from the published table. Do not calculate the gain.
- What the lawyer does: The lawyer decides whether event E1 or E2 happened and works out the capital proceeds and the cost base.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Practical workflow informed by the linked primary sources; the traffic light and working checks are editorial guidance, not a court classification.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.

## Checks the lawyer makes

1. Event E1, creating a trust over a CGT asset, happens when the trust is created. The gain is the capital proceeds from creating the trust less the asset's cost base. The loss is the reduced cost base less the capital proceeds.
2. Event E2, transferring a CGT asset to a trust, happens when the asset is transferred. The gain is the capital proceeds from the transfer less the cost base. The loss is the reduced cost base less the capital proceeds.
3. Do not apply a rollover or an exemption the table does not state.
4. The lawyer decides which event applies and calculates the gain or loss.

## Notes

- These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.

## Sources

- [Australian Taxation Office: CGT events](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/cgt-events) (checked 2026-10-22)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/trusts-and-estate-planning/record-the-capital-gains-tax-event-when-an-asset-is-settled-on-or-transf/united-states.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*