Reference no: EM132797081

You are a licensed financial advisor and have been approached by a couple in their late 60's. The wife is on a superannuation pension of $60,000 pa having retired from work some years before. The husband still works part-time earning $35,000 and has a small shareholding of $350,000 from which he receives income of $25,000 (including dividend imputation credits). The husband intends to retire at the end of the year. The wife did not hold any shares previously but has recently inherited a share portfolio totalling $1,200,000, most of which had been held by her parents since the mid 1990's.

Provide the couple with options as to how they can best manage the shares held by both to maximise their return and minimise tax liability. What would be the best structure for holding the shares? You are not restricted to holding all the shares in one structure.