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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

 

 

 

Complete Succession Agreement

(Single Policy Owner - Business Insurance Trust Agreement)

 

One Page, One Policy Succession Plan

This is the standard Agreement that allows all Business and Personal Cover to be included on One Policy (a Complete Succession Plan).

It deals with all Cover (including Debt Reduction and Key Person Capital Cover) securely and tax-effectively.

Complete Succession Plan

It is not necessary for each Business Person to have all of the Needs in order to derive a benefit from the One Page, One Policy Strategy or Complete Succession Plan.

The Strategy will benefit most Business People who have any two or more of the Needs.

Simple Succession Plan

It can also be used for Business People who only require an Asset Strategy or a Simple Succession Plan.

 

Complete Succession One Policy Worksheet

Click here to see a Risk Analysis Worksheet completed for a Complete Succession Plan held on One Policy pursuant to the terms of a Complete Succession (or Business Insurance Trust) Agreement.

 

Transfer of Existing Policies to Trustee

One or more existing Self-Owned Policies can be transferred or “parked” under the roof of the Trust, if there are health issues with respect to any of the Lives Insured.

If the Policy is transferred to the Trustee by the Life Insured, the Life Insured continues to be the “original beneficial owner” of the Policy for CGT purposes (so that the transfer does not have any adverse CGT implications).

 

Identity of Policy Owner and Trustee

The Trustee is usually the Clients' Business itself or one of the entities within the Business Structure (preferably a Company).

IGS does not use an Institutional Trustee Company.

Click here to read about your choice of Trustee.

 

Client Summary of Agreement

Click here to see a brief Summary of the purpose and effect of the Agreement.

 

Benefits of Agreement

Click here to see a brief Summary of the benefits of the Agreement.

 

Fixed Legal Fees

The Fixed Fee charged by IGS depends on the choice of Agreement.

Click here to see the current Fees for all Agreements and Services.

These Fees apply subject to the Legal Fee Policy.

 

Concessional and Reduced Fees

The IGS Legal Fee Policy offers substantive reductions in the Fixed Legal Fees to:

 

Concessional Fee Structure

The Concessional Fees only apply to Clients of Advisers with a current Marketing Licence which entitles the Adviser to use the IGS Adviser Support System.

The Adviser Support System requires an Adviser to undertake training, which enhances their ability to give Succession Planning Advice both time- and cost-effectively.

Click here to read more about the Concessional Legal Fees.

Timeframe for Payment of Concessional Fee

The Concessional Fee is only available if complete instructions and payment are received before the Policy Owners apply for the Cover.

 

Standard and Reduced Legal Fees

The IGS Legal Fee Policy distinguishes between Standard and Reduced Fees.

The difference between the two Fees for a Complete Succession Agreement is usually $990.

The difference reflects the extent to which the IGS Documentation Procedure has been complied with.

The Reduced Fee is only available to Clients whose Adviser is entitled to a Concessional Fee.

Click here to read more about the Reduced Fees.

Availability of Reduced Fee

The Reduced Fee is only available if complete instructions and payment are received before the Policy Owners apply for the Cover.

 

Concessional Legal Fees (Current Licence)

Legal Fee (Up to Four Individuals)

Standard Legal Fee: $3960

Reduced Legal Fee: $2,970

NSW and Victorian Agreements

In the case of NSW and Victorian Agreements, the Business will also need to pay Stamp Duty of $220 in addition to the Standard Legal Fee.

IGS will bear the cost of this Stamp Duty, if the conditions of the Reduced Legal Fee are satisfied.

 

Non-Concessional Legal Fees (No Current Licence)

Legal Fee (Up to Four Individuals)

Standard Legal Fee: $3,960

Reduced Legal Fee: $3,960

NSW and Victorian Agreements

In the case of NSW and Victorian Agreements, the Business will also need to pay Stamp Duty of up to $550 in addition to the Standard Legal Fee.

IGS will bear the cost of this Stamp Duty, if the conditions of the Reduced Legal Fee are satisfied.

 

Legal Fee (More than Four Individuals)

The above Fees apply for the first four individuals.

There is an additional Fee of $330 per individual for each individual exceeding four individuals.

 

Additional Fact-Finding Fees

It is not always possible to complete all of the details of the Business Structure and Liabilities of the Business in the Client Meeting or Teleconference.

If the information is not supplied in the Questionnaire, there will be an additional Legal Fee of $440 to collect the information from the Business or its Advisers, review it and incorporate it into the Succession Plan and Documentation.

Click here to read more about the Additional Fact-Finding Fees.

 

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: $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.

 

Original Beneficial Ownership of Policies

The Policy Owner is intended to hold the Policy on behalf of the Beneficial Owner (usually the Life Insured) on the terms of a Trust Agreement.

As a result , any delay in the instructions to prepare the Trust Agreement can result in Capital Gains Tax being paid on the Insurance Proceeds at the time of a subsequent claim.

Click here to read about the importance of establishing the Original Beneficial Ownership of the Policies in accordance with the IGS Documentation Procedure.

 

Copyright: Ian Gray Solicitor

 

 

Adviser Tip

Trust Ownership can do everything that Self-Ownership can do, but Self-Ownership can't do everything that Trust Ownership can do.

 

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.