Hi all,
I am going through the process currently of changing the Trustee of one of my Discretionary Trusts from personal (me) to Corporate. I have been advised this is the best way to structure to best mitigate land tax and also protect ourselves, and assist in "planning" as we age.
One of the considerations is the best way to structure the shareholder of the corporate trustee. My accountant has previously suggested we have another DFT as sole shareholder of the corporate trustee, but I'm not convinced this is necessary.
If we are both equal shareholders, then we can't elect the directors of the company without a joint decision, meaning if the marriage breaks down one can't just remove the other as director of the trustee, and essentially banish them as beneficiary. Similarly, as our wills both leave everything to each other if we cark it, so if death occurs, then the wills dictate we get the others shares.
I have read some similar queries on this forum, but I haven't really seen a
definitive answer on this particular query.
As I said, I am waiting for solicitor meeting, and I am not planning on setting this up myself, however I am just thoroughly interested in the structure here, and want to be armed with enough knowledge to have a good conversation with solicitor.
Thanks in advance,
I am going through the process currently of changing the Trustee of one of my Discretionary Trusts from personal (me) to Corporate. I have been advised this is the best way to structure to best mitigate land tax and also protect ourselves, and assist in "planning" as we age.
One of the considerations is the best way to structure the shareholder of the corporate trustee. My accountant has previously suggested we have another DFT as sole shareholder of the corporate trustee, but I'm not convinced this is necessary.
If we are both equal shareholders, then we can't elect the directors of the company without a joint decision, meaning if the marriage breaks down one can't just remove the other as director of the trustee, and essentially banish them as beneficiary. Similarly, as our wills both leave everything to each other if we cark it, so if death occurs, then the wills dictate we get the others shares.
I have read some similar queries on this forum, but I haven't really seen a
definitive answer on this particular query.
As I said, I am waiting for solicitor meeting, and I am not planning on setting this up myself, however I am just thoroughly interested in the structure here, and want to be armed with enough knowledge to have a good conversation with solicitor.
Thanks in advance,