The son is a minor, and won’t be 18 for over a decade. The parents are looking at a piece of commercial real estate and want to purchase it under the son’s name somehow.
They’re looking at having a numbered company buy the property and have the son own the company somehow.
The ultimate goal is to create a nest egg for the child in the future.
Any thoughts or suggestions on this?
Main Legal Issues:
Potential legal issues related to transferring ownership of commercial real estate to a minor.
Establishing a numbered company to hold the property on behalf of the minor.
Ensuring the legality and ethical considerations of using the son's name for property ownership.
Questions Answered:
Transferring ownership of real estate to a minor can be complex due to legal restrictions on minors entering into contracts. It may be necessary to establish a trust or other legal entity to hold the property on behalf of the minor until they reach the age of majority.
Creating a numbered company to hold the property can provide a layer of protection and separation between the property and the minor's personal assets. However, the company must be set up in compliance with all relevant laws and regulations.
Using the son's name for property ownership may raise ethical concerns, as the property would technically belong to the minor but be controlled by the parents. It is important to consider the long-term implications and potential conflicts that may arise from this arrangement.
Potential Strategies:
Establish a trust: Setting up a trust to hold the property on behalf of the minor can provide legal protection and ensure that the property is managed in the best interests of the child.
Consult with a lawyer: Seeking legal advice from a lawyer specializing in real estate and estate planning can help navigate the complexities of transferring property to a minor and ensure compliance with all relevant laws.
Consider long-term implications: Before proceeding with the purchase, it is essential to consider the potential consequences of using the son's name for property ownership and explore alternative strategies to achieve the goal of creating a nest egg for the child.
Things to Discuss with a Lawyer:
Legal implications: Understanding the legal implications of transferring property to a minor and the best way to structure ownership to protect the child's interests.
Tax considerations: Discussing the tax implications of transferring property to a minor and exploring potential tax-saving strategies.
Future planning: Planning for the future and considering how the property ownership will impact the child as they grow older and eventually take control of the asset.
Always consult with a lawyer.
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