If you have built a business, you need to plan for its future after you leave or retire. Likewise, you want to ensure that your other assets pass in an effective way to the people you love after your death.
Your business and other assets will not die with you. As no-one can predict when a succession or estate plan will need to be implemented, early planning and expert advice is essential.
Business succession
Many business owners spend most of their time working on building the business and consider it to be their superannuation, but have no plans about how it will be able to fund retirement. You should also consider the implications of your death or illness on the future viability of the business, or how it can support your beneficiaries.
- Is the business to be wound up when I leave it?
- Can it be sold as a going concern?
- Can a partner buy my share?
- Where would the funds come from to do this?
- Can it be left within my family?
Estate planning
You have worked hard to build your wealth over a lifetime. Now you need to ensure that it goes to the appropriate beneficiaries in the most effective way on your death. You should also consider making provision for the possibility that you may need someone to act for you and make decisions on your behalf when you are unable to do so.
Considerations include:
- Who are my potential beneficiaries?
- What assets can be transferred to them?
- Who should get what?
- What happens to my superannuation when I die?
Insurance on your life
- Key Person insurance in your business
- Buy/Sell agreements between partners
- Wills and Powers of Attorney