Strategy: Personally, Own the Shares of a Bucket Company Generally owning shares in a company in a personal name is not recommended because of 2 main factors a) Bankruptcy, and b) Income tax If the shareholder becomes bankrupt the creditors will get the assets in the company by stepping into the shoes and of the bankrupt and becoming the shareholders. Also with owning in an individual’s name there is no flexibility with income distributions as dividends can only be paid to shareholders. But it can be a good idea to hold the shares in an individual name where there is no or very low risk of bankruptcy and there is no need to distribute the income. Naturally legal advice is needed as there are a lot of legal issues to consider, but below is an example of how this could work. Example Homer is going on in years and Bart thinks his dad has 10 years left in him, so he sets up a new bucket company with the shares of this company owned directly by Homer. Bart causes various trusts he controls to distribute to the bucket company so that when Homer dies Homer will leave the shares of the company to a Testamentary Discretionary Trust that Bart controls. Once the TDT holds the shares the bucket company can then pay dividends which can be directed to minor children via the trust.