Acquiring Property for Children >> Use of Trusts & Companies

This is last ownership structure referred to above. The following is a very brief summary on the implications for this type of ownership structure.

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 along the lines of the above to ensure that the facts of your own particular circumstances will ensure that the tax savings are achieved. We can provide this advice by way of consultation subject to an extra charge.