The Reduced Fee applies where the "Original Beneficial Ownership" of the Cover for Capital Gains Tax purposes has been established in accordance with the Clover Law Documentation Procedure.

The Clover Law Procedure and Documentation together obtain CGT exemptions that might not otherwise be available.

However, if the Procedure is not followed, there is a risk of a CGT liability at the time of a claim.

The Procedure and Fee Policy are designed to minimise the risk that Advisers or Clients will take shortcuts that have serious CGT implications at the time of a claim.

The CGT issues are explained in more detail here.

Standard Fees

The Standard Fees assume that:

the Proposals will be signed by the Trustee before they are submitted to the Insurance Company (see here);
the completed Questionnaire and payment will be forwarded to Clover Law before the Proposals are signed by the Trustee and submitted to the Insurance Company;
no substantive amendments to the standard Agreement are required; and
all necessary instructions are supplied and the Agreement is finalised and signed within six months of the first draft.

Reduced Fees

The Reduced Fee is only available if complete instructions and payment are received before the Policy Owners apply for the Cover, because of the above CGT issues.

If this condition is not met, it may be be necessary to prepare an Original Beneficial Ownership Agreement and/or cancel and re-issue the Policies (in addition to paying the Standard Legal Fee).

Concessional Legal Fees

The Clover Law Legal Fee Policy distinguishes between Clients whose Adviser is entitled to a Concessional Fee or a Non-Concessional Fee.

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

A Business which is entitled to a Reduced Concessional Fee can therefore save $990 with respect to the cost of their Agreement.

Click here to read more about the Concessional Legal Fees.

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.

Draft Questionnaire

Clients and Advisers should email or fax the draft completed Questionnaire to Clover Law before formally submitting it, so that Clover Law can advise what additional information still needs to be supplied.

If this information is supplied with the completed Questionnaire before the Cover is applied for, this will usually avoid the need for the Fact-Finding Fee.

Original Beneficial Ownership of Policies

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

Change of Fee Policy

Clover Law 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.

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

Please contact us to arrange a meeting or teleconference.