Balancing the family objectives, tax planning and wealth protection is essential to transitioning wealth from one generation to the next. Wealth protection from relationship breakdowns, deceased estate claims and business risks are concerns that drive modern-day succession planning. Client structuring often involves the use of trusts, private companies and self-managed superannuation funds.
This paper illustrates by practical case examples the use of private companies, discretionary trusts and testamentary trusts to pass inheritance to the next generation, including:
- Understanding the clients' current structures
- Amending trust deeds and company constitutions
- Using testamentary trusts, including income splitting with beneficiaries, CGT death rollovers and duty concessions