Any issue with bucket company of a DT being owned by that same DT?

Discussion in 'Legal Issues' started by Bob Mullin, 22nd Nov, 2019.

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  1. Bob Mullin

    Bob Mullin Active Member

    Joined:
    14th Nov, 2019
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    Location:
    Melbourne
    Hi folks

    I was potentially thinking of having a bucket company as a beneficiary of a family trust to help smooth income over years. Is there any issue with the shares in that bucket company being owned by the same family trust, so that when the bucket company issues franked dividends they can be paid to the relevant beneficiaries? I've seen people suggest that the shares in the bucket company should be owned by a separate family trust but I'm just trying to cut down on admin unless there is a good reason for doing so.

    Thanks!
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    18th Jun, 2015
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    Australia wide
    Yes. S100A.
    Dont
     
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  3. Bob Mullin

    Bob Mullin Active Member

    Joined:
    14th Nov, 2019
    Posts:
    30
    Location:
    Melbourne
    Thanks Terry - saved me from a potentially costly mistake!
     
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