Structures and share classes

No. Every structure we design starts from a blank piece of paper and is built around the family's wishes, dynamics and objectives. Share classes, voting, the role of any trust and the funding all vary. Some families need a simple company with the children holding shares, others a blended structure with a trust. We explain the trade-offs before you decide, and we say so if a company is not right.

Usually the parents, so that they stay in control while the growth builds in shares owned by the children or a trust. It varies by family, though, and some give votes to a different class or share them between generations. Voting control is not normally a gift with reservation by itself, but benefits tied to the gift can be, so the design needs care.

Sometimes, but changes have tax consequences. Altering the rights of shares in a close company is treated as a disposition for inheritance tax, and value shifting can be a disposal for capital gains tax. Adding new share classes or new shareholders is often simpler than converting existing shares. It is best to build in the flexibility you expect to need at the start.