Welcome to episode four of “The Business Owners Podcast”. We’re now over half way through our Asset Protection series, which has so far looked at protecting your family home, your shares in your business, and now we continue the conversation looking at how you can use trusts for asset protection.
Succession Planning – keeping the business in the family
Last week we talked to our client Wayne and helped him set up a family trust. Wayne is now at the point where he needs to think about who is the best person to control that trust.
This brings us to the nitty gritty of succession planning. We know from experience that no two businesses or business owners are alike. That is why it is so important to take a “deep dive” with each client, to really get to the bottom of what they want and what is most important to them.
For example some business owners, like Wayne, want to keep their business in the family. But this can complicate things and raise further questions like:
- Does the nominated successor actually want to run the business?
- Will there be an appetite for the business to remain in the family past the next generation?
A lot of people make assumptions about how their business will operate once they’re gone, and don’t actually have these crucial discussions with family members.
So in this session we ask Wayne the tough questions!
Binding Death Benefit Nomination forms versus a Trustee controlling your super
We revisit our coffee shop soap opera protagonist, Gino. Last week Gino was diagnosed with a serious illness and needed to consider who would control his family trust and business assets.
In this episode, Gino is worried about what will happen if he were to pass away. We discuss what options Gino has for the distribution of his self-managed super fund (and the commercial property held by the fund), one example being a Binding Death Benefit Nomination form.
A Binding Death Benefit Nomination
form, rule or notice is a document that acts like a ‘Will’ for your super fund. Your super fund won’t necessarily form part of your Estate when you pass away and therefore will need to be dealt with separately. An effective Binding Death Benefit Nomination form will be signed, dated and witnessed and will specify to whom a benefit should be paid and in what manner, for example, to be paid as a pension to your spouse.
Next episode we continue with both Wayne and Gino’s journey, and carry on the conversation around family trusts and self-managed superannuation funds!
*Please note that Martin and Ed’s asset protection strategies are general in nature and do not take into consideration any of your personal circumstances. You must seek individually tailored advice to ensure you properly protect your business and personal assets.