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New Company - Hold shares in own name or a Trust ?

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Paranda View Drop Down
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  Quote Paranda Quote  Post ReplyReply Direct Link To This Post Topic: New Company - Hold shares in own name or a Trust ?
    Posted: 20/August/2012 at 23:32
Hi,
Looking to incorporate a new company and I need to say whether we want to hold the shares in our own name or via a Trust or some portion to each.

We already have a family trust setup with a Corporate Trustee, so no extra costs in going this way. The trust doesn't have any assets and does not trade anymore, but does have tax losses. It has not made a Family Trust election and further I don't think the trust deed has been updated for many years, so not sure if this is something that would be a problem.

My family (my husband & myself) will hold 80% of the shares and 2 other individuals will hold 20%.

So would you hold all the shares in the trust or hold some in the trust and some in the individual names. And in approximately what proportion ?
The trust idea is mainly so we can get some benefit from the income splitting once the kids reach 18.

Thanks
P.

 

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rambler1 View Drop Down
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  Quote rambler1 Quote  Post ReplyReply Direct Link To This Post Posted: 21/August/2012 at 02:03
No one can give you personal tax info, it depends on the personal tax circumstances of yourself, your children and the others, as to the best way of handling shareholding.

The resurgence of the trust should be no problem, even if its old and you may need a updated deed.

If you have carry forward losses in the trust then ts generally better to hold your and your spouses share in the trust so you can get the benefit of the carry forward losses.

The other 20% depends on who the others are.

Id see your accountant or financial advisor and let him advise you, he will know your circumstances better than us

Edited by rambler1 - 21/August/2012 at 02:04
Luke 11 46: Woe unto you also, ye lawyers! For you load men with burdens that are difficult to carry, and you yourselves won't even lift one finger to help carry those burdens.

 

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Paranda View Drop Down
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  Quote Paranda Quote  Post ReplyReply Direct Link To This Post Posted: 21/August/2012 at 16:36
Thanks. I wasn't looking for personal Tax advice, just a general idea, so that when I go to the accountant I have some idea of what they are talking about.
Thanks.

 

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khon View Drop Down
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  Quote khon Quote  Post ReplyReply Direct Link To This Post Posted: 21/August/2012 at 22:57
Agreed with rambler, it is hard to give advice without knowing the full details. Having said that, if your trust carried foward big losses, you might as well ultilise the loss. The coporate trustee can hold the shares and the trust itself to trade.
Personal opinion only, should not take it as legal advice

 

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