Would it be beneficial to move my share portfolio under this
company/family trust structure?
Q.
I have a six figure share portfolio that is currently in my
personal name. As I am a contract worker, I've set up a
company/family trust structure. Would it be beneficial to move the
share portfolio under this company/family trust structure? Would
this mean that when my wife stops working to become a stay at home
mum I am able to distribute any income/capital gain to her rather
than adding it to my day to day income thus incurring a larger tax
bill?
A.
You could certainly move the portfolio to a family trust, but
you would need to find out what capital gains tax, if any, would be
payable on the sale. Providing the numbers stack up the use of a
discretionary family trust would enable income from the investments
to be distributed to your wife and to your children, if this was
appropriate. Make sure you take expert advice from an Accountant
before you start.