Very often we speak to Individuals and Families that have done well for themselves but may not of received the correct advice or current advice around areas which include
Below is a typical case study that we see with Families from where they are currently exposed and how we provide a comprehensive holistic solution.
The Jones family resides in Melbourne, Australia. The family includes Michael (62 years old), Sarah (60 years old), and their two sons, Peter (34 years old) and David (32 years old). Michael and Sarah have accumulated significant wealth over the years, including a family home, an investment property, a share portfolio, and superannuation. Their combined net worth is around AUD 8 million.
Despite their substantial wealth, they have done little to secure it. Their assets are held personally, and they have traditional wills that leave their assets directly to their sons.
1. Assets could be at risk from creditors or legal disputes.
2. Potential for their wealth to be diminished by taxes.
3. Inadequate provision for their wealth to be transferred efficiently and securely to their sons.
Michael and Sarah establish a Family Protection Trust with a Leading Member Corporate Trustee, which provides them with the correct structure to protect all of their personally held assets. Their properties and share portfolio are secured within the trust structure by an advanced Gift/Loan back strategy protecting their wealth from creditors and litigation. They also incorporate a split-trust option so that on their passing the wealth is split into 2 sub-trusts for Peter and David and their bloodline to manage moving forward.
With the Family Protection Trust, they have a line of succession in place of Leading Member Appointors, enabling the family wealth to be seamlessly passed down the generations. Also, using the same line of succession is put in place successor directors for the corporate trustee.
By implementing a Family Protection Trust, Michael and Sarah are ensuring that their family wealth won't be going to their estate on passing and avoiding any family provision claims. In their wills, Michael and Sarah include Testamentary Trusts for each of their sons. These trusts will provide a tax-efficient and protected inheritance for Peter and David for whatever isn't protected in their Family Protection Trust. They also establish their Enduring Power of Attorneys and Advanced Health Directives to provide complete peace of mind if either of them become incapacitated.
By using a strategic combination of a Family Protection Trust and testamentary trusts in their wills, Michael and Sarah have significantly enhanced the protection, control, and growth potential of their wealth. They can look forward to a comfortable retirement, knowing their wealth will be efficiently and securely transferred to the next generation with bloodline protection.
Disclaimer: The information and any advice contained on this website is general in nature and does not take into account the objectives, financial situation or needs of any particular person. You need to consider whether the information is appropriate to your needs, and where appropriate, arrange an appointment to seek professional advice prior to acting on this information.
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