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Shares in a company/family trust

Noel Whittaker | July 1 2009 | The Sydney Morning Herald & The Age (subscribe)

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.

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