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Restructure of shares to trust.

Discussion in 'Accounting, Tax & Legal' started by handyandy, 19th Aug, 2007.

  1. handyandy

    handyandy Well-Known Member

    Joined:
    6th Jun, 2006
    Posts:
    312
    Location:
    Sydney Nsw
    Question for the accountants.

    I have one company that has assets and is held four ways, namely my wife and I and our 2 sons with just about equal shareholding, in personal names.

    I am just wondering whether we would trigger CGT if I establish 4 seperate trust and assigned the shareholdings to these trusts?

    Cheers
     
  2. MattR

    MattR Well-Known Member

    Joined:
    23rd May, 2007
    Posts:
    229
    Location:
    Sydney

    Yep. You might. Remember the 50% general discount concession. Also you might want to consider the Small Business Concessions for CGT, there may be some relief available there aswell.

    However, what are you trying to achieve? There maybe other options.
     
  3. Saskatoon

    Saskatoon Well-Known Member

    Joined:
    17th Oct, 2005
    Posts:
    67
    Location:
    Aldgate, SA
    Hi handyandy,
    on the face of it four trusts could be unnecessary (and expensive to establish and run). MattR is right about other options; e.g. perhaps a unit trust with each individual holding the same number of units as presently shares in the company. Definitely professional advice needed!
     
  4. handyandy

    handyandy Well-Known Member

    Joined:
    6th Jun, 2006
    Posts:
    312
    Location:
    Sydney Nsw
    Its more to do with asset protection.

    This came out of a conversation re my son's marrying some gold diggers and what would be exposed. The bottom line is their share holding in one of our investment companies. You may ask why there is an investment company which has direct ownership..... well it was one of my first forrays using other than a direct investment and basically I stuffed up:eek:

    So now the question is how can I best fix up this mess without getting a CGT bill. Similarly I would want it done in such a way that there can be no claw back should things get nasty with the future dil(s) (daughter in law - love the acronym;))

    We were able to pull another company out of this mess by assigning all shares to a family trust just prior to its first tax return (phew) and nowadays we use a HDT with a corparate benificiary so that I can control my income and stay with the 30% income tax bracket.

    Cheers