Assets under private trust

anonymous (Partner) (23 Points)

05 December 2021  

Dear Sirs,

Would like your opinion on the following case :-

1. Agarwal trust is a private trust having Mr. A agarwal as the owner of the trust and Mr. B Agarwal and Mr. C Agarwal as beneficiaries having equal stake in the trust.

2. Agarwal trust owns two properties : 1 residential property where Mr. B Agarwal ad Mr. C agarwal live with their families and 1 factory property where Both Mr. B agarwal and Mr. C agarwal run their equal partnership business.

3. Mr. B agarwal would like to shift out of the residential property and live elsewhere with his family while Mr. C agarwal would like to gain ownership of the residential property with a clear title to his own name.

4. Mr. B Agarwal and Mr. C Agarwal would like to continue running the business at the factory property together as equal partners.

What is the best way for Mr. C agarwal to gain ownership of the residential property while attracting the least amount of long term capital gain or possibly no long term capital gain on registering the property to his name.

Warm Regards,