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Technically, a trust cannot own shares in a company as it is not a separate legal entity. A trust is simply a relationship. However, this changes when we think about trustees and what they can hold for beneficiaries. Trustees can own many types of property, including liquid cash and property.
To put stocks or bonds that you hold into a trust, you typically use a document called a securities assignment (sometimes called a "stock power"). This document asks the securities' transfer agent for permission to transfer the securities to your trust.
It is a simple enough matter to avoid this immediate inheritance tax charge on a transfer to a trust: your client can transfer his shares to the trust before they are sold. Then, 100% business property relief would be available, any transfer would be at a nil value and no immediate inheritance tax charge arises.
Trusts are a legal tool that allow one to give control of property, stocks, bonds, or other assets to a second party to be used for someone else's benefit without giving the beneficiary full control over the assets.
How to Move Shares Into Your Trustupdate its register of members;issue you with a new share certificate reflecting that your trust now holds your shares; and.notify ASIC of the change.