Use of Trusts & Companies
The following is a very brief summary on the implications for this type of ownership structure where parents are acquiring property for their children.
Trusts
- Are a separate legal entity.
- Allow control by Parents over property while it is in the Trust.
Companies
- Are a separate legal entity.
- Children can be equity shareholders while parents can control the company.
- Tax problems arise on a greater scale when getting the property out of the company.
The use of these structures makes matters more complicated and professional advice should be sought in advance to consider your own personal circumstances. Generally speaking we do not recommend the use of a company for acquiring property especially where the intention is to give the property to your children at a later date to be used as their private residence.
You should obtain independent professional advice before implementing any plan involving trusts and companies to ensure that tax savings can be achieved for your own particular circumstances. We can provide this advice by way of consultation.