ESTATE PLANNING BY OLIVER PORTWAY & CAROLANNE BARKLA HEUZENROEDERS LAWYERS
Disclaimer • The Contents of this presentation are for general information only. They are not intended as professional advice. For that you should consult a solicitor or barrister, or other suitably qualified professional. • © HEUZENROEDERS LAWYERS
Estate Planning • Do you want to be fair to your children and avoid family conflict ? • Do you worry about losing control of the farm and/or family business? • Have you planned for changes in the family structure?
Estate Planning • If I died tomorrow would I leave behind a mess for my family? • Should I be organising a succession/retirement plan & is the plan practical? • Should my family members complete a family questionnaire? • Is our business structure right for us? • Is our asset ownership appropriately structured?
Why bother with estate planning? • Peace Of Mind • Family Harmony • Wealth Maximisation • Tax Minimisation
What happens to my estate when I die? • Do you have a Will? • Is it the ‘right Will’ for your needs? • Does your Will take into account fair & reasonable treatment of beneficiaries, as opposed to equal treatment of beneficiaries? • Does your estate provide enough financial support for your dependents? • Have you considered other Advance Directives in case of mental or legal incapacity prior to death?
What should I do? • Talk with professionals – lawyer, accountant & financial advisor. • Talk with family. • List your options. • Develop a plan. • Communicate the plan. • Implement the plan. • Evaluate the plan.
Talk with your Lawyer • Review your Will or obtain a copy of your Will. • Review any other legal documents held by your lawyer, accountant & financial advisor. • Ask your lawyer about treating family members fairly rather than equally. • Is the Will practical and useable? • Does you Will suit your family needs? • Ask your lawyer about testamentary trusts (life interests and discretionary trusts).
Talk with your Accountant • Review your business structure – ask the accountant to summarise the structure and prepare a flow chart. • Are there loans, capital or beneficiary accounts that need to be reviewed, especially if a company or trust is involved? • Can your business structure be simplified? • What are the advantages/disadvantages of various structures?
Talk with your Financial Advisor About: • Superannuation. • Life insurance policies (personal and business). • Investment strategies.
Talk with your Family • What are their goals, objectives and expectations? • Communication is the key. Full and frank discussion! Consider using a facilitator to protect family relationships from damage. • A family meeting or series of meetings may be required, or a family questionnaire may be a starting point.
List Priorities • Secure retirement for senior generation. • Ensuring future security for younger generation? • Treating children fairly (not necessarily equally). • Who will participate in the business? In planning? • Setting out a future structure for the family business? • Insurance choices? • How & when will management be transferred? • Planning for contingencies such as death, injury and divorce?
Develop your plan • Write down ideas & preliminary plans. • Consult with the professionals again to consider all aspects of the plan. • Have you incorporated their ideas, and also suggestions from your family? • Has the family reviewed the draft plan and provided feedback?
Communicate your plan • Put your final plan in writing. • Distribute the final plan to other family members and ask for feedback. • Consider “road testing” your plan to identify any potential issues – tax/stamp duty etc. Use the worst case scenario.
Put your plan into action • Have you updated your Will to reflect your plan? • Have you put in place other Advance Directives? • Have you implemented a Family Agreement? • Have you updated your life insurance and superannuation needs to reflect your plan? • Have you implemented business structure changes? • Evaluate the plan. • Review the plan when circumstances change.
Estate planning • Peace Of Mind • Family Harmony • Wealth Maximisation • Tax Minimisation • Review upon change of circumstances
Basic checklist for seeing your Lawyer • List of all family members and their roles in the business/farm. • Flow chart of business structures and list of each person’s interest in the business. • Any legal documents related to the business. • Copy of your preliminary plan. • Accountant’s name & telephone number. • Financial advisor’s name & telephone number.
Presented by: Oliver Portway and Carolanne Barkla HEUZENROEDERS LAWYERS Tanunda 8561 1000 Kapunda 8566 3433 Nuriootpa 8562 3355