- Confirm your business structure with your accountant.
- Using any of the available business methodologies available, work with your business partners and your accountant to estimate the value of your business and the owner’s business shares.
- With your solicitor, specify the triggers for an exchange of a business share.
- With the help of your Financial adviser, determine the types of insurance required – Death , TPD or Are all three required or just one or two ?
Major Tip: Discuss policy ownership options with all three your risk adviser, accountant and solicitor. The default option is usually self-ownership but factors such as control and the business structure may mean you decide on a different option. It would be advisable to get all three professionals in a room together or via a video link up to discuss these issues.
Taking in to account your desired ownership option, confirm with your accountant the tax treatment of your insurance premiums and insurance proceeds.
- Speak to your solicitor about the legal agreement required to transfer the business share and, if necessary, the insurance proceeds.
- Review your will and your superannuation death benefit nominations (if necessary) with your solicitor.