Business Succession Planning
Instruction Form

What is a Business Succession Plan?

A Business Succession Plan is a financial and tax plan that can:

  • give your business every chance of survival when your partner is gone or suffers from a long term illness or accident

  • ensure your family and yourself receive the true value of your interest in the business

  • allow for an orderly transition of ownership to the remaining partners, family members, or key employees - rather than suffer a fire sale

  • provide a ready market for your business interests

A Business Succession Plan considers the best way to:

  • structure your affairs to reduce unnecessary Capital Gains Tax for you, your family and your remaining partners

  • fund the transfer of your interest in the business to your outgoing partner

  • trigger the events to allow the succession to take place, eg death, total and permanent disability and a trauma event, like a heart attack or a stroke

Where do my partners find the money to buy out my interest?

After you get your agreement in place you need to decide how the remaining partners will pay out the deceased partner’s interest. Few people have cash reserves or available credit to make such a purchase, especially when the business is already suffering by your absence.

The safest and usually the most economic answer is insurance. There are 3 types of insurance that you should talk to your Insurance Adviser about:

  • Life Insurance (if your partner dies)

  • Trauma (if your partner suffers an event like a heart attack, stroke and cancer)

  • Total and Permanent Disability (for example, loss of function in an arm)

You and your partners may be able to qualify for all 3 types of insurance.

Brett Davies Lawyers licences Advisers, Lawyers and Accountants to print and reproduce this instruction form for their clients. You are welcome to read our Business Succession Planning Manual.
Client Name:  
Address:  
Postal Address:  
Telephone:

Home:

  

Mobile:

  
 

Work:

  

Fax:

  
Adviser:  

Telephone:

  
Address:  
Accountant:  

Telephone:

  
Address:  
 

Please complete this form with the advice of your Adviser and Accountant. When completed as far as you are able, your Adviser can ring us on (08) 9325 7999 to arrange your Strategy Development Meeting. We charge an hourly fee for this first meeting. We can often fix price the work after the first meeting.

Your professional advisers must attend this meeting. Please bring your original Partnership Deeds, Trust Deeds or Company Secretary File.

What assets do you want to protect?(eg: Goodwill, vehicles, machinery, etc.)

Asset

  

Current Market Value
   

$
   

$
   

$
   

$

Total Value

  

$
 

List the assets owned by the business above. The assets are recorded at their current market value. The total should agree with the sale price you would expect to receive if the business was sold. Where the tangible assets of the business (eg. car or land) are worth less than the entire business (as will generally be the case), the difference is described as good will.

What business structure holds the assets?

q Company

(Complete form 1)

q Unit Trust

(Complete form 2)

q Partnership

(Complete form 3)

q Family Trust

Business Name:

  

Business Does:

  

How do you own the business structure?

Stakeholder 1

  

Stakeholder 2

  

Stakeholder 3

  

Stakeholder 4

q Person’s name

  

q Person’s name

  

q Person’s name

  

q Person’s name
or   or   or   or

q Trust name

  

q Trust name

  

q Trust name

  

q Trust name
 

Form 1: Company

If the assets are owned in the name of a company, please complete the following questions. Please complete the back of this form for any trusts which own shares in the company.

Company’s Name:

  

Company’s A.C.N. Number:

  

Company’s registered address:

  

Company’s date of incorporation:

  

Shareholder 1 Details

First shareholder’s full name:  
First shareholder’s postal address:

 
What date were the shares allotted?  
How many shares were allotted?  
What type of shares were they?

q Preference

q Ordinary

q Other
Were the shares fully paid?

q Yes

q No: ____% paid

Shareholder 2 Details

Second shareholder’s full name:
Second shareholder’s postal address:
What date were the shares allotted?
How many shares were allotted?
What type of shares were they?

q Preference

q Ordinary

q Other
Were the shares fully paid?

q Yes

q No: ____% paid

Shareholder 3 Details

Third shareholder’s full name:  
Third shareholder’s postal address:

 
What date were the shares allotted?  
How many shares were allotted?  
What type of shares were they?

q Preference

q Ordinary

q Other
Were the shares fully paid?

q Yes

q No: ____% paid

Shareholder 4 Details

Fourth shareholder’s full name:  
Fourth shareholder’s postal address:

 
What date were the shares allotted?  
How many shares were allotted?  
What type of shares were they?

q Preference

q Ordinary

q Other
Were the shares fully paid?

q Yes

q No: ____% paid

If a Shareholder is a Trust...

 

Shareholder 1

  

Shareholder 2

  

Shareholder 3

  

Shareholder 4

Type of trust:

q Fixed

q Discretionary

(Family)

q Unit

  

q Fixed

q Discretionary

(Family)

q Unit

  

q Fixed

q Discretionary

(Family)

q Unit

  

q Fixed

q Discretionary

(Family)

q Unit

Trust’s name:

              

Trust Deed’s date:

              

Trust Deed’s amendment date:

              

Trustee’s full name:

              

Trustee’s address:

              

If the trustee is a company...

Trustee’s A.C.N. number:

              
Date of incorporation of the trustee:              

If the trust is a Unit Trust...
Full names of unit holders:

1.

2.

3.

4.

  

1.

2.

3.

4.

  

1.

2.

3.

4.

  

1.

2.

3.

4.
Date the units were allotted:

1.

2.

3.

4.

  

1.

2.

3.

4.

  

1.

2.

3.

4.

  

1.

2.

3.

4.
Number of units allotted:

1.

2.

3.

4.

  

1.

2.

3.

4.

  

1.

2.

3.

4.

  

1.

2.

3.

4.
Type of units:

q Discretionary

q Ordinary

q Other

  

q Discretionary

q Ordinary

q Other

  

q Discretionary

q Ordinary

q Other

  

q Discretionary

q Ordinary

q Other
               
Were the units fully paid?

q Yes

q No: ____%

  

q Yes

q No: ____%

  

q Yes

q No: ____%

  

q Yes

q No: ____%
 

Form 2: Unit Trust

If the assets are owned in the name of a unit trust, please complete the following questions. Please complete the back of this form for any trusts which own units

Unit Trust’s name:

  

Unit Trust Deed date:

  

Unit Trust Deed amendment dates: (if any)

  

Unit Trust Trustee’s full name:

  

Trustee’s registered address:

 

If the trustee of the Unit Trust is a company...

What is its A.C.N. number?

  

On what date was the company incorporated?

  

Unit Holder 1 Details

First unit holder’s full name:  
First unit holder’s postal address:  
What date were the units allotted?  
How many units were allotted?  
What type of units were they?

q Discretionary

q Ordinary

q Other
Were the units fully paid?

q Yes

q No: ____% paid

Unit Holder 2 Details

Second unit holder’s full name:  
Second unit holder’s postal address:  
What date were the units allotted?  
How many units were allotted?  
What type of units were they?

q Discretionary

q Ordinary

q Other
Were the units fully paid?

q Yes

q No: ____% paid

Unit Holder 3 Details

Third unit holder’s full name:  
Third unit holder’s postal address:  
What date were the units allotted?  
How many units were allotted?  
What type of units were they?

q Discretionary

q Ordinary

q Other
Were the units fully paid?

q Yes

q No: ____% paid

Unit Holder 4 Details

Fourth unit holder’s full name:  
Fourth unit holder’s postal address:  
What date were the units allotted?  
How many units were allotted?  
What type of units were they?

q Discretionary

q Ordinary

q Other
Were the units fully paid?

q Yes

q No: ____% paid

If a unit holder is a Trust...

 

Unit Holder 1

  

Unit Holder 2

  

Unit Holder 3

  

Unit Holder 4

Type of trust:

q Fixed

q Discretionary

(Family)

q Unit

  

q Fixed

q Discretionary

(Family)

q Unit

  

q Fixed

q Discretionary

(Family)

q Unit

  

q Fixed

q Discretionary

(Family)

q Unit

Trust’s name:

              

Trust Deed’s date:

              

Trust Deed’s amendment date:

              

Trustee’s full name:

              

Trustee’s address:

              

If the trustee is a company...

Trustee’s A.C.N. number:

              
Date of incorporation of the trustee:              

If the trust is a Unit Trust...
Full names of unit holders:

1.

2.

3.

4.

  

1.

2.

3.

4.

  

1.

2.

3.

4.

  

1.

2.

3.

4.
Date the units were allotted:

1.

2.

3.

4.

  

1.

2.

3.

4.

  

1.

2.

3.

4.

  

1.

2.

3.

4.
Number of units allotted:

1.

2.

3.

4.

  

1.

2.

3.

4.

  

1.

2.

3.

4.

  

1.

2.

3.

4.
Type of units:

q Discretionary

q Ordinary

q Other

  

q Discretionary

q Ordinary

q Other

  

q Discretionary

q Ordinary

q Other

  

q Discretionary

q Ordinary

q Other
Were the units fully paid?

q Yes

q No: ____%

  

q Yes

q No: ____%

  

q Yes

q No: ____%

  

q Yes

q No: ____%
 

Form 3: Partnership

If the assets are owned in the name partnership, please complete the following questions. Please complete the back of this form for any trusts which are partners.

What is the name of the partnership?

  

Partnership Deed date: (or the date the partnership started if no deed)

  

What is the date of any amendments to the Partnership Deed?

  

Partner 1 Details

First partner’s full name:  
First partner’s postal address:  
Date the interest was acquired:  
What percentage is owned by this partner?  
What rights are attached to this interest?  
What was the price of the interest?  
Is this partner related to another partner?

q Partner 2

q Partner 3

q Partner 4
Is the partner active or silent?

q Active

q Silent

Partner 2 Details

Second partner’s full name:  
Second partner’s postal address:  
Date the interest was acquired:  
What percentage is owned by this partner?  
What rights are attached to this interest?  
What was the price of the interest?  
Is this partner related to another partner?

q Partner 1

q Partner 3

q Partner 4
Is the partner active or silent?

q Active

q Silent

Partner 3 Details

Third partner’s full name:  
Third partner’s postal address:  
Date the interest was acquired:  
What percentage is owned by this partner?  
What rights are attached to this interest?  
What was the price of the interest?  
Is this partner related to another partner?

q Partner 1

q Partner 2

q Partner 4
Is the partner active or silent?

q Active

q Silent

Partner 4 Details

Fourth partner’s full name:  
Fourth partner’s postal address:  
Date the interest was acquired:  
What percentage is owned by this partner?  
What rights are attached to this interest?  
What was the price of the interest?  
Is this partner related to another partner?

q Partner 1

q Partner 2

q Partner 3
Is the partner active or silent?

q Active

q Silent

If a partner is a trust...

 

Partner 1

  

Partner 2

  

Partner 3

  

Partner 4

Type of trust:

q Fixed

q Discretionary

(Family)

q Unit

  

q Fixed

q Discretionary

(Family)

q Unit

  

q Fixed

q Discretionary

(Family)

q Unit

  

q Fixed

q Discretionary

(Family)

q Unit

Trust’s name:

              

Trust Deed’s date:

              

Trust Deed’s amendment date:

              

Trustee’s full name:

              

Trustee’s address:

              

If the trustee is a company...

Trustee’s A.C.N. number:

              
Date of incorporation of the trustee:              

If the trust is a Unit Trust...
Full names of unit holders:

1.

2.

3.

4.

  

1.

2.

3.

4.

  

1.

2.

3.

4.

  

1.

2.

3.

4.
Date the units were allotted:

1.

2.

3.

4.

  

1.

2.

3.

4.

  

1.

2.

3.

4.

  

1.

2.

3.

4.
Number of units allotted:

1.

2.

3.

4.

  

1.

2.

3.

4.

  

1.

2.

3.

4.

  

1.

2.

3.

4.
Type of units:

q Discretionary

q Ordinary

q Other

  

q Discretionary

q Ordinary

q Other

  

q Discretionary

q Ordinary

q Other

  

q Discretionary

q Ordinary

q Other
Were the units fully paid?

q Yes

q No: ____%

  

q Yes

q No: ____%

  

q Yes

q No: ____%

  

q Yes

q No: ____%
 

Record the financial structure through which the business is owned. Detail the stakeholders in the business. The stakeholders may be trusts, companies or individuals. If you need more space, attach a separate sheet.

What events would you like to trigger your Business Succession Plan?

Next, indicate the triggering event which will bring the plan into action. This should match the insurance cover recommended by your Risk Adviser.

q

Death

q

Total and permanent disability

(as defined in your insurance policy)

q

Trauma event

(as defined in your insurance policy)
 

How do I fill out this form?

To fill out this form, you should talk to your Risk Adviser, Accountant and Financial Planner.

Is there any other information you would like to tell us?
 
 
 
 
 

Where do I go from here?

Please ring us on 08 9325 7999 to make a time for you and your Adviser and Accountant to come into our office. The meeting can not proceed unless you have your Adviser, Accountant or Lawyer present to help us. This is because we specialise in tax issues, such as Business Succession Planning. We are not general practitioners.

You and your business are unique. Your Business Succession Plan is tailored to your individual requirements. We discuss your Business Succession Planning with you in light of what you need and the tax laws. Consultations are generally at $374 per hour.

Before we prepare the legal documents necessary for the Business Succession Plan, we give you a written fixed quote. We fully inform you before you make your decision.

Who should Brett Davies Lawyers call to make the appointment?

Would you like us to call...

q Yourself

q My Accountant

q My Financial Planner

q My Risk Adviser
 

to make a time for the initial consultation at Brett Davies Lawyers?

Do we have your permission to talk to your advisers?

I ___________________, authorise Brett Davies Lawyers and the professional advisers mentioned on the covering page of this instruction form to share information relating to the development of my Business Succession Plan.

 

        

Dated ___/___/___

  

Dated ___/___/___

  

Dated ___/___/___

How would you like to pay for the appointment?

I enclose my cheque for $374 for my initial consultation with Brett Davies Lawyers

ü

q

 

(please tick one box)

  

Please debit my credit card

ü

q

 

 Visa / MasterCard

circle one
 

Card number

                                        
 

Name on card

    
 

Expiry date

month

        /20__ year
For more details on Business Succession Planning please read our Manual.
 

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