April 2012 Newsletter

In this edition:

Welcome

Super Contributions: What are the rules?

Business Succession Planning

Changes to private health insurance rebated introduced

Feature: Death and taxes in Superannuation

Considering the implications of traumatic events such as heart attack or cancer, becoming disabled or in the event of death are important factors in protecting your family's future.

But what about your business?
Will your business survive even after the death or critical illness of one of its principals? What happens if an owner suffers a tragic event and there is no succession plan in place?

• Third parties could end up with an unacceptable degree of control in your business;
• A deceased owner's estate could demand that a business be wound up;
• It could be necessary to negotiate additional borrowing or face asset depletion;
• The stability of the business could be questioned by suppliers and customers;
• Lending institutions could seek repayment or re-negotiation of loan facilities.

Without a plan, a business is vulnerable to forces that may hasten its self-destruction.

Business Succession Planning is just one strategy that business owners can use to exit their business. It is about developing a strategy to ensure a smooth and trouble-free hand over following a traumatic event, disablement or death.

Even with a Business Succession Plan to ensure the transfer of a business interest upon death, all problems are not solved. Where do the remaining owners get the money to buy to the deceased's family's interest?

At GCC Financial Planning we work closely with your accountant as well as a specialist Business Succession Planning lawyer to provide you with the information you need regarding what funding mechanisms are available, what the tax implications are, how a business succession plan is created and what our process is to implement this strategy for your business.

For more information, please contact us.