Protect your business sucession
Succession planning is simply a strategy for the handover of a business from one owner to another in particular circumstances, such as the planned or unplanned departure of a principal from the business.
Buy/sell insurance cover can help to alleviate some of the financial burden associated with these circumstances.
Purpose of buy/sell business insurance
The use of insurance as a funding source provides greater certainty for all parties and can be less expensive than taking on debt. It will help to eliminate the need for:
Key considerations when acquiring buy/sell insurance
A comprehensive plan helps to ensure the business survival and can minimise disputes between owners and families. This plan includes a documented buy/sell agreement to cover issues such as:
Structuring buy/sell business insurance cover
Buy/Sell business insurance policies can be owned under a number of structures but in most cases self-owned policies are the most tax effective option. This also provides greater flexibility if new owners enter the business or existing owners exit as there is no need to transfer ownership of policies.
Premiums paid on insurance policies used for Business Succession purposes are generally not tax deductible. There may be tax implications including CGT for the departing owner and continuing owners and you should seek specialist taxation advice.
If you would like to discuss your options, we encourage you to simply request a call and we will reach out as soon as possible.
Alternatively, if you would prefer to arrange a call at a time convenient for you, click here.
By providing your details you give consent to being contacted and for those details to be stored for communications, contact, marketing and relevant updates.
No spam, just carefully curated updates.
By subscribing to our newsletter you give consent to collect and store your details for communications of articles, contact, marketing and relevant updates.
Business and Licensee Information: Authorised Representative No. 1272643. Dumont Wealth Pty Ltd. Corporate Authorised Representative No. 1308337. Licensed by Alliance Wealth Pty Ltd, ABN 93 161 647 007, AFSL No. 449221. Financial Services Guide (FSG): www.centrepointalliance.com.au/fsg/aw
General Advice Warning and Disclaimer: This information is general advice. We have not considered your objectives, personal or financial circumstances. You should consider the appropriateness of the advice for your circumstances before making any decision. You should obtain and consider the relevant Product Disclosure Statement and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication. If you are not the intended recipient, please advise the sender by return e-mail, do not use, copy or disclose the contents, and delete the message and any attachments. The contents of this email may contain information that is confidential and privileged. If you are not the intended recipient or have received this email in error you are not permitted to disclose or use any information contained in it. If you are not the intended recipient or have received this email in error please notify us immediately by reply email or telephone and then delete this email and any attachments. Unauthorised use, copying, distribution or publication of this email and any attachments is prohibited. No warranty is made that this email or attachment(s) are free from computer virus or error free. The contents of this message are the views of the author and do not necessarily reflect the views of Dumont Wealth Pty Ltd or any related entity. To the maximum extent permitted by law, no person including Alliance Wealth Pty Ltd nor its related entities, employees or representatives accepts responsibility for any loss suffered by any person arising from reliance on this information. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. It is based on our understanding of regulations and laws as at the publication date. As these are subject to change you should talk to a professional adviser for the most up-to-date information. By subscribing to our newsletter, you consent to marketing emails and the storage of your data.
Important disclaimer and warning
The information contained on this webpage does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions. Whilst all care has been taken in the preparation of this information (using sources believed to be reliable and accurate), to the maximum extent permitted by law, no person including Centrepoint Alliance Limited or any member of the Centrepoint Alliance Group of companies and also Dumont Wealth Pty Ltd, Dumont Holdings or any member or related companies accept responsibility for any loss suffered by any person arising from reliance on this information. The information documented on this website page is valid at the date of upload (3 October 2024) and should be reverified by the reader at the time of viewing.
