Who is the actual owner of the shares?
Published as Shares Transferred To A Trust
Question
An individual owned shares in a company. He later transferred the shares to a discretionary trust wherein he and his wife and children are beneficiaries. This was done for tax purposes. Who is the actual owner of the shares?
Answer
The individual that owned the shares remains the owner of the shares even though the trust document states otherwise.
- Approved by
- Mufti Muhammed Saeed Motara Saheb D.B.
Where scholars differ, it’s safer to take the more cautious view.
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Source: Darul Ifta, Darul Uloom Azaadville — https://www.iftadua.co.za/shares-transferred-to-a-trust/26579/
Fatawa SA: https://fatawa.co.za/fatwa/azaadville-26579
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