I am waiting on confirmation from my account – however as it’s a weekend I’m not sure when he’ll get back to me. I’m curious as to what others have done here.
We’re setting up a new business with the corporate trustee structure, i.e. XYZ Pty Ltd ATF XYZ Trust.
I’m curious to know how others with this set-up of a Corporate Trustee and Discretionary Trust has structured their shareholders. From our limited knowledge in the space, it seems to make sense to appoint the Trustee of XYZ Trust as the Shareholder to maximise CGT benefits in the eventual acquisition of the business.
Beneficially holding them in an individual shareholders name seems to negate any CGT savings (with asset limits).
Can a corporate trustee company, hold the shares of the corporate trustee company, in its own capacity of Trustee?
Ok it seems you are setting up a new business within a trust structure and that you have opted for a corporate trustee rather than an individual or individuals. Makes perfect sense if its a trading trust.
The trustee (a company here) does not have a beneficial interest in the assets of the trust so the shareholders of the trustee do not have any entitlement. The only thing those shareholders will do is govern the board of directors of the trustee company which are the main decision makers of the trust.
Typically you would make those individual shareholders the same directors of the trustee but you do need to consider those shareholdings in terms of their potential control of the board of directors. Thats a management issue not an ownership issue.
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