Transferring shares into a family trust - what price?
- Thread starter alexlee
- Start date
I would think the disposal value to your personally would be the market value of the shares on the day the disposal was effective. I'd think closing price may be sufficient?
I asked an accountant this question about managed funds (and got that answer) but in that case the intra-day different prices would not be an issue).
You obviously need to check this, but my parents are in the process of transferring assets into a newly set up family trust.
My head is spinning after all the meetings and stuff I have listened to, but I am fairly sure that for the transfer of the shares, they pick a date to transfer, but there is something about then being able to chose a date within (I think) two months or so prior to the actual transfer date, and use that figure. In other words, my parents can pick a date on which they want to transfer. They might want a lesser price or a higher one, depending on their tax situation.
Perhaps somebody else knows what I am talking about, but there is definitely something about flexibility in picking a share price/date with the transfer of the shares.
My head is spinning after all the meetings and stuff I have listened to, but I am fairly sure that for the transfer of the shares, they pick a date to transfer, but there is something about then being able to chose a date within (I think) two months or so prior to the actual transfer date, and use that figure. In other words, my parents can pick a date on which they want to transfer. They might want a lesser price or a higher one, depending on their tax situation.
Perhaps somebody else knows what I am talking about, but there is definitely something about flexibility in picking a share price/date with the transfer of the shares.
Hi Alex. Possibly not. The trust has been set up for a few months, but nothing has yet gone over. First house going in a few weeks. Perhaps it is because the trust has been set up that they can chose the date, but perhaps it has to be after the trust was set up. That makes more sense. If it was brand new today, I would assume they would not have this choice, but not sure.
My parents are working closely with a retirement specialist, their accountant, a solicitor who is looking after updating their wills to encompass the gradual transfer of properties over a few years, and doing special powers of attorney to cover my dad's alzheimers and future transfers.
My parents were gobsmacked to find out that their very carefully worded wills did not in fact leave things as they wanted, and would have ended up with one grandchild getting a third of their estate. The testementary trust that was set up to avoid this happening was not able to be set up as worded by their original solicitor.
It is SO important if anybody has a complicated estate or complicated family situation to get SPECIALIST legal advice, as my parents luckily found out before it was too late.
It is so much more complicated than it appears on the surface. I thought an enduring power of attorney was just that, but in the case of my dad, this solicitor is drawing up a new power of attorney which specifically covers future property transfers. My parents have had to get letters from their doctors AND my dad's specialist to say he is still capable of knowing what he wants.
This solicitor says that the enduring power of attorney they had could very well have been challenged.
I am just so lucky that one brother knows so much, because I just sit there and try to look intelligent, but a lot of what is said regarding the intricacies of the planning just sails right over my head.
He got the brains, and I got the looks
My parents are working closely with a retirement specialist, their accountant, a solicitor who is looking after updating their wills to encompass the gradual transfer of properties over a few years, and doing special powers of attorney to cover my dad's alzheimers and future transfers.
My parents were gobsmacked to find out that their very carefully worded wills did not in fact leave things as they wanted, and would have ended up with one grandchild getting a third of their estate. The testementary trust that was set up to avoid this happening was not able to be set up as worded by their original solicitor.
It is SO important if anybody has a complicated estate or complicated family situation to get SPECIALIST legal advice, as my parents luckily found out before it was too late.
It is so much more complicated than it appears on the surface. I thought an enduring power of attorney was just that, but in the case of my dad, this solicitor is drawing up a new power of attorney which specifically covers future property transfers. My parents have had to get letters from their doctors AND my dad's specialist to say he is still capable of knowing what he wants.
This solicitor says that the enduring power of attorney they had could very well have been challenged.
I am just so lucky that one brother knows so much, because I just sit there and try to look intelligent, but a lot of what is said regarding the intricacies of the planning just sails right over my head.
He got the brains, and I got the looks
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