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Snapshot

  • Tax is often a problem in succession.
  • Two sets of eyes are frequently better than one.
  • Always take intuition seriously.

Ken and Mary work in the same legal firm, both focusing on tax and succession. Ken is a bit older and therefore a bit more experienced. Mary is somewhat sharper in her technical knowledge. They work together well, often sharing the workload.

Will and division 7A sting

Ken tells Mary about his old farmer mate, Mike, who set up a company back in the 1970s to buy the farm. All the shares in the company have always been owned by Mike. Now he’s making his will. He has two sons – Alan and Roger. The company has two blocks of land, one to go to each.

Mike wants to keep the old family company going so he told Ken that Alan, the elder of the two, should get the shares in the company to keep the eastern block, but the western block had to go to Roger. Ken draws up the will on the basis the shares are given to Alan, but subject to the condition that he must make the company transfer the western block to Roger.

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