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Welcome:

Welcome

Site Map:

Site Map

Adviser Updates:

Adviser Updates

Publications and Documents:

Publications and Documents

 

Business Succession Planning:

Business Succession Planning

Need for Succession Plan

Need for Asset or Buy/Sell Strategy

Need for Liability or Key Person Strategy

Negotiating a Succession Plan

 

Simple Succession Plan:

Simple Succession Plan

 

Complete Succession Plan:

Complete Succession Plan

Strategy

Financial Needs

Insurance Funding

Retirement Funding

 

One Page Strategy:

One Page Strategy

Asset Needs

Liability Needs

Personal Needs

Who Pays the Premiums?

Valuing the Business

Simplifying the Valuation Issue

Equity vs. Loan Capital

 

One Policy Strategy:

One Policy Strategy

Flexibility

Dual Role of Personal Cover

Dual Role of Debt Red'n Cover

Security & Tax-Effectiveness

Cost Savings

Pre-Agreed Purchase Price

Apportionment of Premiums

Methods of Aggregation

 

Multiple Policy Approach:

Multiple Policy Approach

Super Fund Ownership

Tax Disadvantages

Cost Disadvantages

Other Disadvantages

Geared Premium Funding

Super Buy/Sell

 

One Page, Two Policy Strategy:

One Page, Two Policy Strategy

 

Other Issues:

Tax Deductibility

Inadequate Insurance Proceeds

Vendor Finance

Changing Needs

Future Growth of Equity

Trauma Buy/Sell Strategy

 

Sole Proprietors and Families:

Sole Proprietors and Families

Overview

Family Ownership

Sale Strategies

Third Party Buy/Sell Strategies

Estate Equalisation Strategies

Family Buy/Sell Strategies

Second Generation Strategies

Debt Reduction Strategies

 

 

 

 

 

 

Cost Savings

 

One Page, One Policy Strategy

In most cases, the One Policy Strategy and the Business Insurance Trust structure will result in:

  • reduced Policy Fees every year (usually between $50 and $100 per Policy per annum); and

  • significant Volume Discounts with respect to the annual Premium for higher sums insured (see the Table “Insurance Trust Premium Savings”).

Click here to download an example of the savings that can be obtained.

 

One Page, Two Policy Strategy

A Hybrid or Multiple Policy-Owner Agreement can be used, if the Business wishes to have some of the Cover (e.g., Personal Cover) in the Superannuation environment, so that they can obtain a tax deduction for part of the Premium.

While a Multiple Policy-Owner Agreement might result in a tax deduction for some of the Premium, it can also reduce the other cost savings and compromise some of the other benefits of a Single Policy Strategy.

In most cases, the savings from the One Policy Strategy are comparable to the deductibility of part of the Premium, without the limitations of Super Fund Ownership.

 

Cost Savings Fund the Cost of Changing Your Agreement

Regardless of the type of Agreement that documents your Succession Plan or Buy/Sell arrangements, there would be costs associated with any future variation of the Agreement.

However, the cost of variations of the Business Insurance Trust Agreement is designed to be funded as far as practicable within the scope of the savings in Policy Fees and Premiums.

In summary, the Business Insurance Trust structure is designed to save money, some of which is then used to fund the cost of keeping your Succession Plan up-to-date.

Click here to download a PDF of the current Fees.

 

Copyright: Ian Gray Solicitor

 

 

Adviser Tip

Regardless of the type of Agreement that documents your Succession Plan or Buy/Sell arrangements, there would be costs associated with any future variation of the Agreement.

However, the cost of variations of the Business Insurance Trust Agreement is designed to be funded as far as practicable within the scope of the savings in Policy Fees and Premiums.

See more Adviser Tips

 

 

 

 

Current Marketing Schedule

Current Marketing Schedule

Ian Gray travels to most capital cities regularly throughout the year and is available for Meetings.

Please click here to see his availability in Brisbane, Sydney, Melbourne, Adelaide and Perth.

Please contact us to arrange an appointment or teleconference.