Session 1: Passing on the Baton: Business Succession and the Estate Plan
Business succession planning is complex. It involves bringing people into and out of business, shareholder considerations, asset protection and a range of tax implications. This session explores some of the key issues involved with taking care of business in the estate plan, including:
- Bringing on new shareholders
- Franking credits for the departing shareholder
- Buy-sell funding and insurance
- Dealing with retained earnings prior to exit
- Using the small business CGT concessions
- Business succession and the next generation:
- Dividing up the estate when only some of the kids are interested in the family business
- Contributing value back into the family
- Option agreements
- Ways to pass control
Session 2: A Place to Call Home: Main Residence and Death
The main residence is often the most valuable asset in an estate, and sometimes the only asset. Special tax treatment applies on death, and thought must go into planning where one spouse survives the other. This session will take a comprehensive look at estate planning for main residences, including:
- What constitutes the main residence/dwelling?
- The effect of title arrangements in estate planning: joint tenancies and joint proprietors
- What to do where one spouse survives the other and what are the most beneficial options:
- Title and ownership
- Life Interest
- Right to occupy
- Impact of holding and sale on pension and aged care fees
- Replacement residences – tax implications
- Death, CGT and the main residence exemptions:
- What are the relevant dates and time limits? Pre and post CGT considerations
- Full and part exemptions – when do they apply?
- Extension of exemption and Commissioner’s discretion
- Cost base
- Main residences in a testamentary trust
- Case study
- Tips for preservation of asset value
Session 3: Asset Protection and Contractual Arrangements: Worth the Paper They’re Written On?
When it comes to preserving a client’s assets, there are a number of contractual arrangements which can potentially provide some protection. However, mutual wills, binding financial agreements and contractual wills come with a number of risks and limitations. This session explores how these contractual arrangements can be used as an estate planning strategy and how you can best navigate the risks. It covers:
- Binding financial agreements:
- How much reliance can be placed on them to determine asset ownership and intentions in the future?
- Do they preclude a subsequent challenge to the Will of one party by the other party?
- Mutual and Contractual Wills:
- Advantages and disadvantages
- What if one party changes or revokes their Will?
- Enforcement issues – Can a surviving spouse avoid a mutual will?
- The role of statement of wishes
- Use of family agreements