Transferring private shares to family trust

Discussion in 'Accounting, Tax & Legal' started by kefa, 10th Oct, 2017.

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  1. kefa

    kefa Member

    Joined:
    6th May, 2016
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    Sydney
    Hi,

    I currently own a private company under my own name. I wish to transfer the ownership to my family trust that I only recently setup. I'm getting confused on what name I put as the new owner in my share register. Having read some other threads it seems like I should be putting the name of the corporate trustee as the new owner. What I don't understand is how anyone works out whether it is owned by the corporate trustee or the trust?

    Regards,
    kefa
     
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  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker Business Plus Member

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    Australia wide
    A trust is a relationship and not an entity so any assets of the trust must be legally owned by the trustee.

    You will need to enter into a written transfer agreement with the trustee, transfer the shares and the company which the shares are part of must then record the transfer on its register and issue new certificates. Don't forget to consider the stamp duty, CGT and asset protection implications.
     
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  3. kefa

    kefa Member

    Joined:
    6th May, 2016
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    Location:
    Sydney
    Thanks for the tips Terry.
     
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