Home

 

Overview:

Fixed Legal Fees

 

Terms and Conditions:

Legal Fee Policy Concessional Legal Fees

Concessional Legal Fees

Reduced Legal Fees

Original Beneficial Ownership

 

Additional Service Fees:

Additional Fact-Finding Fees

Variations of Draft Agreement

 

Initial Agreements:

Initial Agreements

Content of all Agreements

Current Legal Fees

Inadequate Insurance Proceeds

Trauma Buy/Sell Strategy

 

Alternative Initial Agreements:

Complete (BITA)

Complete (Hybrid BITA)

Simple (Self-Owned BSA)

 

Proprietors Agreements:

Proprietors Agreement

 

Debt Reduction Agreements:

Debt Reduction Agreement

 

Other Services:

Variation Agreements

Meetings and Advice

 

Cost Savings:

Cost Savings

 

 

 

Variations of Draft Agreement

 

These may be additional Fees if the draft Agreement is not finalised promptly and variations are required.

 

Any Variation of Incomplete Draft Agreement

There will be an additional Fee for the finalisation of an incomplete draft Agreement not finalised within six months of the first draft:

  • After six months from first draft: minimum of $440

  • After 12 months from first draft: the standard Fee for an Initial Agreement.

Failure to finalise any Agreement promptly can have serious adverse commercial, legal and taxation implications for the Business and the other parties to the Agreement.

If underwriting with respect to any Life Insured has been deferred by the Insurer, the Agreement should be finalised with respect to the other Proprietors, so that there is no uncertainty with respect to the other Policies.

 

Variation of Draft Agreement as a Result of Underwriting Decisions

If a Life Insured is unable to obtain the required amount of insurance (e.g., because of health or premium cost), IGS will not charge for the drafting of any consequential amendments to the draft Schedules for the relevant Life Insured.

For example, the Life Insured might be unable to obtain:

  • sufficient Cover for a particular Insurable Event;

  • any Cover for a particular Insurable Event (e.g., TPD); or

  • any new Cover (and might therefore have to use a pre-existing Policy).

In some cases, the available Insurance Proceeds might fund only part of the Pre-Agreed Purchase Price.

No Additional Drafting Fee

The standard Fixed Fee for all IGS Agreements entitles the Business to the drafting of Vendor Finance or other Provisions that deal with the payment of any shortfall in the Sum Insured.

This means that if a Proprietor is unable to obtain the required amount of Buy/Sell Cover for the Purchase Price of their Equity, they will still have a pre-agreed Succession Plan.

As a result, the Proprietors are not prejudiced by the payment of the Legal Fee before the Policies have been underwritten.

Additional Meeting and Advice Fee

If additional Meetings or Advice are required to formulate the terms of a Vendor Finance or Retirement Strategy, IGS will quote an alternative Fixed Fee.

Example

For example, if the Pre-agreed Sale Price was $600,000 and the only Cover available was for $400,000, the Vendor Finance Provisions could provide that the shortfall of $200,000 would be paid in four annual instalments of $50,000 per annum (plus interest).

Changes Because of Underwriting Decisions

This ensures that decisions made in the insurance underwriting process do not necessarily frustrate the formulation of a Complete Succession Plan for all Proprietors.

 

Change of Fee Policy

IGS reserves the right to change the Fee Structure from time to time.

Any change will not affect any Fixed Fee quotation for the preparation of an Agreement that has been accepted and paid in accordance with the quotation.

 

Copyright: Ian Gray Solicitor

 

 

Adviser Tip

The standard Fee allows for up to two (2) hours’ consultation with the Adviser or Client with respect to the Client’s needs and the completion of the Questionnaire.

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.