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.
Civic Legal 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.
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Client Name:
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Address:
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Postal Address:
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Telephone:
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Home:
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Mobile:
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Work:
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Fax:
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Adviser:
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Telephone:
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Address:
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Accountant:
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Telephone:
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Address:
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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.)
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Asset
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Current Market Value
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$
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$
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$
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$
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Total Value
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$
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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?
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q Company
(Complete form 1)
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q Unit Trust
(Complete form 2)
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q Partnership
(Complete form 3)
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q Family Trust
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Business Name:
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Business Does:
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How do you own the business structure?
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Stakeholder 1
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Stakeholder 2
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Stakeholder 3
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Stakeholder 4
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q Person’s name
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q Person’s name
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q Person’s name
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q Person’s name
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or
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or
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or
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or
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q Trust name
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q Trust name
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q Trust name
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q Trust name
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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.
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Company’s Name:
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Company’s A.C.N. Number:
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Company’s registered address:
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Company’s date of incorporation:
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Shareholder 1 Details
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First shareholder’s full name:
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First shareholder’s postal address:
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What date were the shares allotted?
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How many shares were allotted?
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What type of shares were they?
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q Preference
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q Ordinary
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q Other
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Were the shares fully paid?
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q Yes
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q No: ____% paid
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Shareholder 2 Details
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Second shareholder’s full name:
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Second shareholder’s postal address:
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What date were the shares allotted?
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How many shares were allotted?
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What type of shares were they?
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q Preference
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q Ordinary
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q Other
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Were the shares fully paid?
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q Yes
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q No: ____% paid
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Shareholder 3 Details
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Third shareholder’s full name:
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Third shareholder’s postal address:
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What date were the shares allotted?
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How many shares were allotted?
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What type of shares were they?
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q Preference
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q Ordinary
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q Other
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Were the shares fully paid?
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q Yes
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q No: ____% paid
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Shareholder 4 Details
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Fourth shareholder’s full name:
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Fourth shareholder’s postal address:
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What date were the shares allotted?
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How many shares were allotted?
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What type of shares were they?
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q Preference
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q Ordinary
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q Other
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Were the shares fully paid?
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q Yes
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q No: ____% paid
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If a Shareholder is a Trust...
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Shareholder 1
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Shareholder 2
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Shareholder 3
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Shareholder 4
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Type of trust:
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q Fixed
q Discretionary
(Family)
q Unit
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q Fixed
q Discretionary
(Family)
q Unit
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q Fixed
q Discretionary
(Family)
q Unit
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q Fixed
q Discretionary
(Family)
q Unit
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Trust’s name:
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Trust Deed’s date:
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Trust Deed’s amendment date:
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Trustee’s full name:
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Trustee’s address:
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If the trustee is a company...
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Trustee’s A.C.N. number:
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Date of incorporation of the trustee:
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If the trust is a Unit Trust...
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Full names of unit holders:
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1.
2.
3.
4.
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1.
2.
3.
4.
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1.
2.
3.
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1.
2.
3.
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Date the units were allotted:
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1.
2.
3.
4.
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1.
2.
3.
4.
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1.
2.
3.
4.
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1.
2.
3.
4.
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Number of units allotted:
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1.
2.
3.
4.
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1.
2.
3.
4.
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1.
2.
3.
4.
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1.
2.
3.
4.
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Type of units:
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q Discretionary
q Ordinary
q Other
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q Discretionary
q Ordinary
q Other
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q Discretionary
q Ordinary
q Other
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q Discretionary
q Ordinary
q Other
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Were the units fully paid?
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q Yes
q No: ____%
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q Yes
q No: ____%
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q Yes
q No: ____%
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q Yes
q No: ____%
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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
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Unit Trust’s name:
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Unit Trust Deed date:
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Unit Trust Deed amendment dates: (if any)
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Unit Trust Trustee’s full name:
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Trustee’s registered address:
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If the trustee of the Unit Trust is a company...
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What is its A.C.N. number?
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On what date was the company incorporated?
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Unit Holder 1 Details
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First unit holder’s full name:
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First unit holder’s postal address:
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What date were the units allotted?
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How many units were allotted?
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What type of units were they?
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q Discretionary
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q Ordinary
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q Other
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Were the units fully paid?
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q Yes
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q No: ____% paid
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Unit Holder 2 Details
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Second unit holder’s full name:
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Second unit holder’s postal address:
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What date were the units allotted?
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How many units were allotted?
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What type of units were they?
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q Discretionary
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q Ordinary
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q Other
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Were the units fully paid?
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q Yes
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q No: ____% paid
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Unit Holder 3 Details
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Third unit holder’s full name:
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Third unit holder’s postal address:
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What date were the units allotted?
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How many units were allotted?
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What type of units were they?
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q Discretionary
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q Ordinary
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q Other
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Were the units fully paid?
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q Yes
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q No: ____% paid
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Unit Holder 4 Details
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Fourth unit holder’s full name:
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Fourth unit holder’s postal address:
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What date were the units allotted?
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How many units were allotted?
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What type of units were they?
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q Discretionary
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q Ordinary
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q Other
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Were the units fully paid?
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q Yes
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q No: ____% paid
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If a unit holder is a Trust...
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Unit Holder 1
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Unit Holder 2
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Unit Holder 3
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Unit Holder 4
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Type of trust:
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q Fixed
q Discretionary
(Family)
q Unit
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q Fixed
q Discretionary
(Family)
q Unit
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q Fixed
q Discretionary
(Family)
q Unit
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q Fixed
q Discretionary
(Family)
q Unit
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Trust’s name:
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Trust Deed’s date:
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Trust Deed’s amendment date:
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Trustee’s full name:
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Trustee’s address:
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If the trustee is a company...
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Trustee’s A.C.N. number:
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Date of incorporation of the trustee:
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If the trust is a Unit Trust...
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Full names of unit holders:
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1.
2.
3.
4.
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1.
2.
3.
4.
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1.
2.
3.
4.
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1.
2.
3.
4.
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Date the units were allotted:
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1.
2.
3.
4.
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1.
2.
3.
4.
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1.
2.
3.
4.
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1.
2.
3.
4.
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Number of units allotted:
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1.
2.
3.
4.
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1.
2.
3.
4.
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1.
2.
3.
4.
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1.
2.
3.
4.
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Type of units:
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q Discretionary
q Ordinary
q Other
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q Discretionary
q Ordinary
q Other
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q Discretionary
q Ordinary
q Other
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q Discretionary
q Ordinary
q Other
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Were the units fully paid?
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q Yes
q No: ____%
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q Yes
q No: ____%
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q Yes
q No: ____%
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q Yes
q No: ____%
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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.
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What is the name of the partnership?
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Partnership Deed date: (or the date the partnership started if no deed)
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What is the date of any amendments to the Partnership Deed?
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Partner 1 Details
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First partner’s full name:
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First partner’s postal address:
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Date the interest was acquired:
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What percentage is owned by this partner?
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What rights are attached to this interest?
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What was the price of the interest?
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Is this partner related to another partner?
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q Partner 2
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q Partner 3
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q Partner 4
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Is the partner active or silent?
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q Active
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q Silent
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Partner 2 Details
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Second partner’s full name:
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Second partner’s postal address:
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Date the interest was acquired:
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What percentage is owned by this partner?
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What rights are attached to this interest?
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What was the price of the interest?
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Is this partner related to another partner?
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q Partner 1
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q Partner 3
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q Partner 4
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Is the partner active or silent?
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q Active
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q Silent
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Partner 3 Details
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Third partner’s full name:
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Third partner’s postal address:
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Date the interest was acquired:
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What percentage is owned by this partner?
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What rights are attached to this interest?
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What was the price of the interest?
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Is this partner related to another partner?
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q Partner 1
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q Partner 2
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q Partner 4
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Is the partner active or silent?
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q Active
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q Silent
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Partner 4 Details
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Fourth partner’s full name:
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Fourth partner’s postal address:
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Date the interest was acquired:
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What percentage is owned by this partner?
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What rights are attached to this interest?
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What was the price of the interest?
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Is this partner related to another partner?
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q Partner 1
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q Partner 2
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q Partner 3
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Is the partner active or silent?
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q Active
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q Silent
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If a partner is a trust...
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Partner 1
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Partner 2
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Partner 3
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Partner 4
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Type of trust:
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q Fixed
q Discretionary
(Family)
q Unit
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q Fixed
q Discretionary
(Family)
q Unit
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q Fixed
q Discretionary
(Family)
q Unit
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q Fixed
q Discretionary
(Family)
q Unit
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Trust’s name:
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Trust Deed’s date:
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Trust Deed’s amendment date:
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Trustee’s full name:
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Trustee’s address:
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If the trustee is a company...
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Trustee’s A.C.N. number:
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Date of incorporation of the trustee:
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If the trust is a Unit Trust...
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Full names of unit holders:
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1.
2.
3.
4.
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1.
2.
3.
4.
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1.
2.
3.
4.
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1.
2.
3.
4.
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Date the units were allotted:
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1.
2.
3.
4.
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1.
2.
3.
4.
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1.
2.
3.
4.
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1.
2.
3.
4.
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Number of units allotted:
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1.
2.
3.
4.
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1.
2.
3.
4.
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1.
2.
3.
4.
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1.
2.
3.
4.
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Type of units:
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q Discretionary
q Ordinary
q Other
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q Discretionary
q Ordinary
q Other
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q Discretionary
q Ordinary
q Other
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q Discretionary
q Ordinary
q Other
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Were the units fully paid?
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q Yes
q No: ____%
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q Yes
q No: ____%
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q Yes
q No: ____%
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q Yes
q No: ____%
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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.
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q
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Death
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q
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Total and permanent disability
(as defined in your insurance policy)
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q
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Trauma event
(as defined in your insurance policy)
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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 Civic Legal call to make the appointment?
Would you like us to call...
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q Yourself
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q My Accountant
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q My Financial Planner
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q My Risk Adviser
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to make a time for the initial consultation at Civic Legal?
Do we have your permission to talk to your advisers?
I ___________________, authorise Civic Legal 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.
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Dated ___/___/___
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Dated ___/___/___
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Dated ___/___/___
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How would you like to pay for the appointment?
I enclose my cheque for $374 for my initial consultation with Civic Legal
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ü
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q
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(please tick one box)
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Please debit my credit card
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ü
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q
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Visa / MasterCard
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circle one
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Card number
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Name on card
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Expiry date
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month
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/20__ year
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For more details on Business Succession Planning please read our
Manual.