How best to pass shares to family

Carmen made some canny decisions when buying shares many years ago and wants to leave them to her grandson. She asks Noel Whittaker how best to make this happen.=



Q. Carmen
I have had a portfolio of my own for many years, mainly made up of ‘penny dreadfuls’. They have now come good and I am getting old. I would like to know how I can place them in some kind of trust for my grandson as they grow, while I can still manage them. Can you give me some advice, please?


A. If you transfer the shares to him now, you will be liable for capital gains tax which could be quite substantial if these are cheap shares that have jumped in value. A better way would be to take advice about leaving them to him in your will – then they would pass to him on your death and he would have no capital gains tax liability until he disposed of them. This could be many years in the future.

If he is very young, you could leave them to him in your will via a testamentary trust. Obviously, good advice is essential, not just for this matter but for your estate generally.

Do you have a question you’d like Noel to tackle? Email us at [email protected]


Noel Whittaker is the author of Making Money Made Simple and numerous other books on personal finance. His advice is general in nature, and readers should seek their own professional advice before making any financial decisions.


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Disclaimer: All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for the ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.

Janelle Ward
Janelle Ward
Energetic and skilled editor and writer with expert knowledge of retirement, retirement income, superannuation and retirement planning.
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