Legal Question in Business Law in Texas

Can you give someone a share in a business without their knowledge? As in me giving my sons profits from a small business I own, but not making them aware of it? I'm putting profits into a bank account intended for them and their families, but still available to me for emergencies.


Asked on 9/29/11, 11:18 am

1 Answer from Attorneys
Arthur Geffen Arthur H. Geffen, P.C.

If your children are owners in a business in which they get the profits then they will need to pay tax on it. If you want to use it for your own benefit, then you should probably consider setting up an intentionally defective grantor trust. See a good tax/estate lawyer where you live.

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Answered on 10/13/11, 12:44 pm


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