Ian Maston (Mastoni Tax) considers the tax issues surrounding whether to make a trust or make outright transfers when passing shares to grandchildren.
Question
My client owns 60% of the shares in a family investment company which he has owned for many years. He wishes to pass some shares for the benefit of his children and grandchildren (none of whom work for the company) to reduce his shareholding to 40% but does not know whether he should make a trust or simply make outright transfers to them. What are the tax issues to consider?
Answer
Your client will be making a gift and therefore there should be no stamp duty liability; however he owns an investment company so we can assume that it qualifies...
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Ian Maston (Mastoni Tax) considers the tax issues surrounding whether to make a trust or make outright transfers when passing shares to grandchildren.
Question
My client owns 60% of the shares in a family investment company which he has owned for many years. He wishes to pass some shares for the benefit of his children and grandchildren (none of whom work for the company) to reduce his shareholding to 40% but does not know whether he should make a trust or simply make outright transfers to them. What are the tax issues to consider?
Answer
Your client will be making a gift and therefore there should be no stamp duty liability; however he owns an investment company so we can assume that it qualifies...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
