Estate and Succession Planning

Tax Institute - John Wheatley - Wheatley & Sons

Type: PowerPoint
Knowledge level: Intermediate

Farm Table says:

47 slides covering succession processing, information on capital gains exemptions, partnership rollovers, assets that pass outside a will, and legal requirements for a valid will. Advises to divide farm assets well before death. Good advice re. CGT.

Powerpoint presentation from Wheatley & Sons.

Some key points include:

Reasons for no succession plan:

  • Owner often poor listener and communicator
  • Owner unable to face retirement
  • Longer livety of owners and control syndrome
  • Too busy
  • Family not appropriate

What does succession cost?

  • Cost of setting up plan
  • Cost of reviewing plan

What does it cost if don’t have a plan?

  • Erosion of wealth through disputes and litigation between family members.
  • Size of business reduced to meet needs of claimants.
  • Loss of productivity.
  • Family relationships harmed or destroyed.
  • Missing opportunities.
  • Creating tax liabilities that could have been avoided.

Partnership rollovers

  • Use of double shuffle to get over livestock and plant to successors at written down value.
  • To use this strategy, one party must continue to own 25% or more of livestock.
  • Rollover for plant does not require 25% continuing interest.
2015 - Australia - Tax Institute - John Wheatley - Wheatley & Sons
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