The family holding company is one of the most requested structures among owners with real estate and equity stakes. But it carries set-up, maintenance and tax costs that must be compared with the current situation.
The key points are how assets are contributed, ITBI on transferring property into the holding, how rental income is taxed at company level, ITCMD on gifts of quotas, and each state’s and municipality’s rules.
In many cases the holding is the best option. In others, a well-drafted will solves the problem at lower cost. The decision should come from a study with numbers.