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Succession Planning

Succession planning involves planning for the future – when control and ownership of your estate and business is passed onto successors.

Succession Planning
 

Succession planning involves planning for the future – when control and ownership of your estate and business is passed onto successors.

Succession planning is a fundamental part of overall business planning, but understandably overlooked in the early days of a business.

The fact is; the success of many small to medium sized businesses depends on the capacity of the founders – the owners/operators working actively in the business. When these principals depart unexpectedly, say, due to ill-health or forced retirement, the business can potentially suffer if there are no clear lines of succession.

As a business owner, have you thought of what would happen if this situation arose?

Have you considered who would succeed you and takeover your business? What plans have you put in place for your successor? What will become of your capital and assets in the business?

The key to ensuring an orderly transition to new owners and operators is to draw up a succession plan.

A succession plan can identify who will takeover the business when you exit – but it’s more than that.

More importantly, it involves planning well ahead by establishing financial structures to minimise taxation on the distribution of profits and assets and to protect against the risk of future claims on your assets.

A succession plan should offer a win-win situation: providing a smooth transition to new owners and also at the same time giving you a satisfactory outcome.

At Creagh Weightman, we can work with you to develop a succession plan that is tax-effective and tailored to your needs.

We can help you draw a contract stating clearly the terms of the succession. If you are in a partnership, we can put a buy-sell agreement in place, using insurance policies to fund the purchase of the business and to pay out outstanding debts, if that’s suitable.

We can also assist you with your personal will, which will stipulate what would happen to your business or your share of the business in the event of your death.

In a succession plan we will take account of the following:

  • The assessment of assets
  • The assessment of likely taxation
  • Protection against the possibility of claims against your estate by third parties
  • The establishment of discretionary trusts
  • Exit strategies
  • Trade sales
  • Buying and selling businesses
  • Partnership agreements
  • Shareholder agreements
  • Buy/sell agreements
  • Insurance arrangements
  • Your personal and family circumstances
  • The impact of a marriage, divorce or remarriage
  • Business or company structure
  • Family trusts
  • Real estate
  • Wills and Enduring Powers of Attorney
  • Testamentary trusts
  • Estate Administration
  • Superannuation
  • Life insurance
  • Family law implications



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