It is imperative that all people structure their business activities and asset holdings to minimise tax and threats from external forces.

We recommend clients consider the following structuring of their business affairs after taking the advice of their accountant about taxation and stamp duty issues:

Principal Place of Residence - should be held by the non-risk taking spouse in their name because same is a capital gains tax free asset;

Asset Holding Entity - we recommend the establishment of a discretionary trust with corporate trustee (the sole shareholder and director of which should be the non-risk taking spouse) for the holding of non trading assets;

Business Activity - we recommend the formation of a trading company of which the risk taking spouse will be the sole director and the family trust the sole shareholder to conduct business activities. The plant and equipment to be used by the trading company should be leased from the family trust and funds injected by way of loan from the family trust and secured by a fixed and floating charge over the assets and undertaking of the trading company;

Investment Activities - any further investments or business activities should be considered on a case by case basis and the most appropriate structure adopted after consultation by clients with their accountant and this firm. It is important that clients do not sign any contracts without that advice because they may expose themselves to substantial stamp duty and capital gains tax if it is necessary to change entities to achieve client business and wealth creation aims;

Superannuation - we recommend the establishment of a self managed superannuation fund for clients;

Insurance - we recommend that clients have income protection, trauma, and death benefit insurance, part of which can be funded out of the superannuation fund. Clients and their family should also have appropriate health insurance cover;

Business Succession Strategy - it is important that clients have in place a strategic plan for their business and wealth creation activities, as well as an exit strategy. In the event that clients enter into a business partnership either by way of joint venture, unit trust, partnership or company then it is crucial that the relationship between the parties be documented, including buy out and exit strategies.

Wills - clients should have a business Will which deals with all assets, including shares in companies and powers of appointment pursuant to Trust Deeds, so that their testamentary goals are realised.

More Infomation About The Business Will

Enduring Power of Attorney - clients and their spouses should have an Enduring Power of Attorney in favour of each other, and Advanced Health Care Directive, if applicable.