Perhaps the easiest way of achieving your financial and personal goals is to have a plan. Financial Planning for today, tomorrow and future years can help you retain and grow your wealth. The value of comprehensive strategic planning cannot be overstated and no matter how good ones cashflow or investments are, they can be severely compromised by poor planning. Think of the effects taxation, illness, legal risk and death can wreak upon your financial aspirations. Successful wealth creation requires the formulation of a realistic and robust plan, which is measured and reviewed.
Case Study: Setting Financial Goals – Protecting Individual and Family Wealth whilst providing Financial Security for the Future.
Our Client has built wealth and continues to enjoy high annual income through business and investment ventures. With an ex-wife with whom he has three children, and a current partner and child, the blended-family landscape presents the need for clarity and precision in managing financial matters. A child with a disability added to the matters for consideration.
Our challenge has been to identify the right suite of financial solutions addressing our Client’s Financial Goals.
We needed to establish structures not only addressing our Client’s income, savings and investments but also the long-term financial security of his dependents and growing family.
Our Comprehensive Financial Solution:
The Holzworth Partners team of professionals has developed the following advice for our Client and his family.
- The business was transitioned, tax effectively, to a discretionary family trust structure.
- A second discretionary family trust was established to own investment property. The land tax implications of this were considered.
- His SMSF owns the business premises from which the business operates.
- The son with the disability is concessionally taxed so his trust distributions are calculated to take advantage of that tax concession. A Special Disability Trust, receiving favourable tax and inheritance/succession planning outcomes is incorporated in the solution.
- The superannuation accounts of various family members has been transferred to the SMSF.
- Diversified investment portfolios (including shares, properties, cryptocurrency and commodities) have been established in the trust and SMSF with our investment advice.
- The long term security of the disabled child has been secured with an amount set aside for his financial welfare when the parents both pass away. In addition, Life Insurance has been arranged which will provide financially for the child in the event of the premature death of our Client.
- We have arranged disability and loss of profits insurance for our Client, in case he has a serious disability.
- The business is growing due to coaching from us following monthly reporting and Key Performance Indicators (KPIs) have been initiated.
- A One Page Business Plan has been prepared for the business and the business and reporting system oriented to ensure the business is heading towards their goals.
- Our Client wants to sell part of his intellectual property and we have had to consider if he meets the small business tax concessions as well as how to present the business to the prospective buyers.
- Our Client’s Will prepared by our in-house legal team addresses the scope of the family and its assets.
If building and protecting your family wealth for yourself and future generations is important to you, or if this scenario sounds familiar to you, and you want the best advice to deliver outcomes, please contact Holzworth Partners.