Decoding Family Settlements & Arrangements [Part II]

In Part I of the article an attempt was made to lay down the salient features of a family arrangement by relying on many important judicial decisions as the entire law on the subject is a judge made law. Part II of the article focusses on the tax implications of a family arrangement. While tax should not be the driver for any arrangement much less a family arrangement its implications being consequential to the settlement still need to be understood.