If a person dies and leaves their estate to a bankrupt beneficiary, the estate may be lost to the beneficiary's creditors unless alternate arrangements are prescribed in the Will. This article considers the scope of the exemption of superannuation interests and payments under section 116 of the Bankruptcy Act and outlines options for succession lawyers to consider with clients who wish to protect superannuation death benefits from creditors of financially unstable beneficiaries.
Whether they're the flavour of the month or a sage investment for the future, cryptocurrencies are posing a challenge for tax authorities here in Australia and further abroad. And none more so than Bitcoin. Learn more about cryptocurrencies, and the implications they could have for the future, in our latest tips article.
After being expertly guided by Captain Liquidity and his faithful sidekick, Data Girl, Eddie the Business Owner has finally tended to the shortcomings of his business. And things are finally looking up for our business owner.
It seems like Captain Liquidity has done more harm than good for the sale of Eddie’s business. But the captain’s capable sidekick reveals that there is plenty more for our business owner to be concerned about.
There are murmurs about that Eddie the business owner is looking to sell, and he's open to friendly discussion. But a light-hearted chat about the sale of his business could hold more legal ramifications than Eddie thinks. Luckily, Captain Liquidity is here to lend his expertise.
When the burden of business ownership becomes too great and it's time to sell, there's only one person to call, Captain Liquidity! Join him as he saves business owners from the conundrum of taxes and leads them toward superhero levels of EBITDA.
It may shock you to know, but at Mills Oakley we estimate that we are billing 10 times more fees for shareholder disputes than for setting things up in the first place! As much as we appreciate the business, our advice to business owners is to make sure your shareholder agreements are rock solid from the beginning.
For many business owners, being stuck in a bad corporate structure can feel like being stuck in a bad marriage:
- It seemed like a good idea 10 years ago.
- The things that once attracted you no longer hold much appeal.
- It can be very expensive to get yourself out of it!
One big factor in baby boomer private business exits that is often present but rarely mentioned is health. And in particular, the health of the seller. It's not unusual for a determined business owner to let their health take a back seat. But don't let that be the case when you decide to sell, you could be compromising more than just your own well-being!
Preparing your business for sale takes time. It also takes a holistic approach involving commercial, HR, management, legal, financial, tax, and structural issues and input. Here are some key things to consider from a legal perspective.
Are you a small business owner who finds yourself stuck in a ‘bad’ business structure?
Do you want to improve your business’ structure, however have been unwilling to do so given the tax implications of such a change?
The small business restructure roll-over (SBBR) available under subdivision 328-G may provide the assistance that you have been seeking, to change your business structure.
Mills Oakley's private advisory team has been fortunate to work with Corina Vucic from FC Business Solutions on various interesting client assignments in recent months.
As a gift to our clients and contacts, Corina has prepared this useful HR Checklist, now available via The Business Owners Podcast. We found it extremely useful and hope that you do too.
Bitcoin has been heralded as the ultimate digital payment technology: decentralised, immutable and free from the restraints of existing financial services structures.
Other cryptocurrencies possess similar attributes. This relatively new technology
presents fascinating legal challenges on numerous fronts. But how does the Australian Taxation Office treat cryptocurrency holdings?
Here’s a tricky question to ponder while you’re driving to the next job, or when you’ve got a quiet moment on site: what will happen to your tradie business when you retire?
If you’re like most tradies, your business is probably individually or family owned. And if you’ve never considered who will run your business when you’re gone, you’re certainly not
Robinson Crusoe: studies have shown that only about 25% of family businesses have a formal succession plan. Will your kids take over when you’re gone? And if so, what’s the best way to go about it?
In our previous article, we touched on the topic of keeping your business dealings separate from your personal affairs. In short, you don’t want a rogue client or supplier making a claim against your business and then find that your family home or personal assets are exposed to that claim.
As we explained then, there are some basic steps every tradie should consider taking in order to ensure that this cannot happen. This is known as ‘asset protection’ and it’s our topic for this month.
Asset protection is a response to three different types of potential threats. You may have heard this term used in the context of family law disputes (for example, divorces) or succession matters (for example, challenging a will).
Good business owners spend a lot of time thinking about the positive stuff. Strategy. Goals. Vision. Values.
Does your future hold multi-million dollar contracts? Selling for a squillion dollars to a large corporate? A life of golf and long lunches whilst your minions churn out the work back at the office? All of these are exciting things to consider and plan for.
However, this book doesn’t deal with any of that good stuff. Today, I want to walk with you on the dark side. Come with me as we delve into the murky depths of business owners who
grapple with death, disablement and trauma. Our very own Nightmare on Struggle Street.
You’ve spent years building a great business. So, of course, you expect you will get well rewarded when you one day eventually exit.
The problem is it often doesn’t happen. After years of blood, sweat and tears, many business owners don’t get rewarded at all.
Most business owners assume if they build a profitable business it will automatically lead to a successful exit. It might, but if it does it will probably involve a solid dose of good luck.
There are a few key things that derail most business exits. Most business owners don’t know about them; or don’t want to know about them. Can you handle the “uncomfortable truths”?
You wouldn’t build a house without solid foundations – and your tradie business needs solid legal foundations in exactly the same way. Martin Checketts explains how the legal structure of your business is the key to your prosperity.
When it comes to your business name, it’s often the bit at the end that counts. Joe Bloggs, Sole Trader. Joe Bloggs Pty Ltd. Joe Bloggs & Partners. So what’s the difference? These variations signify an important distinction in the legal status of the business – a difference which could protect your family home and any other assets in the event of the business running into trouble.
Choosing the right business structure is a vital part of protecting not only your business interests, but your personal interests too. This article will look at some of the most common types of business structures and the pros and cons for tradies. But first, let’s take a look at some of the key issues you’ll need to get your head around before dealing with the legal stuff.
Family business succession can be a complex process - sometimes more so than other business transitions or sales. The unique combination of personal and business interests can cause conflict within the family or business, and as such many business owners delay the succession planning process for as long as possible in an attempt to avoid tension or internal disputes.
Neglecting to ensure you have a succession plan in place, however, will almost certainly be detrimental to the business in the long run. Without adequate preparation, you will be putting your business at a disadvantage; making it harder for it to survive and prosper through the generations. But it doesn’t have to be this difficult!
If you’re thinking about selling equity in your business to your senior professional staff, the best approach is always to plan thoroughly and transparently, involving your senior people as part of the process. This method, however, is easier said than done - and we see many business owners fall into the same pitfalls during this process.
Many business owners begin by making vague and unspecific promises to senior staff, including setting them some super-aggressive KPIs or other aspirational performance targets for equity ownership, thinking: “Why not? The challenge will be good for them!”
With concerning regularity, this type of behaviour leads to senior staff departures and a feeding frenzy for the lawyers with subsequent nasty letters, legal proceedings, and “carve up” of the client base.
Estate Planning is more than having a standard will in place. EP takes into account amongst other things, superannuation, trusts, companies etc which may not be able to be dealt with by your will.
Also if your estate is likely to be challenged careful planning is required. Testamentary Trusts built into a will can also provide significant asset protection and tax effectiveness for your beneficiary/s. Having professional advice can also be invaluable.
DIY estate planning has many potential pitfalls. Indeed many solicitors are not experienced in estate planning and do not necessarily have the expertise to provide specialist advice.