Australian and International Family Offices

Very often we speak to Australian and International Family Offices that are successful in building Family Wealth but may not of received the correct advice or current advice around areas which include:

  • Business & Personal Structuring for asset protection as well as being tax effective and making sure the structures are up to date with current legislation for Australian held Businesses and Assets
  • Reviewing all Australian Businesses and Australian held assets on a regular basis for areas to reduce expenses
  • Intergenerational Wealth Transferring on Australian held assets
  • Business Succession Planning on Australian held businesses
  • Estate Planning for Australian held businesses and assets
  • Wealth preservation and building


Below is a typical case study that we see with Australian and International Family Offices with where they are currently exposed and how we provide a holistic solution.

The Stewart Family

Before the Implementation
Situation

The Stewart Family Office manages the wealth of the family, which includes an Australian-based agricultural business and a real estate development company, with total assets valued at AUD 40 million. The family consists of Robert (67 years old), Amelia (65 years old), and their three adult children: Emily (36 years old), Olivia (34 years old), and Liam (31 years old).

Family assets and businesses are held in outdated trusts, established over 20 years ago. Their SMSF has an old trust deed, and all family members have their superannuation in this fund. All family members have simple wills which leave assets directly to the surviving family members.

Concerns:

1. Current outdated trust structures and SMSF deed may not provide optimal asset protection and tax efficiency.

2. Inadequate control over the SMSF due to outdated trust deed.

3. Potential tax inefficiencies and risks due to outdated estate planning.

4. Lack of a formal and comprehensive succession plan for both the assets and the family businesses.

After the Implementation

The first step involves reviewing and updating the trust deeds for the family trusts to  Family Protection Trusts and the SMSF to a Leading Member Family SMSF to ensure they comply with current legislation and best serve the family's needs. This includes provisions for changing trustees, adding and removing beneficiaries, and distribution rules.

The businesses are restructured under the updated Family Protection Trusts, providing greater protection against personal creditors and potential legal disputes. A formal succession plan is put in place, mapping out the transition of the family businesses to Emily, Olivia, and Liam.
Robert and Amelia revise their wills to include Testamentary Trusts for each of their children. Upon their passing, the trusts will provide a tax-efficient, protected inheritance for Emily, Olivia, and Liam.
The updated Family SMSF, with a more relevant and flexible deed, is used to diversify investments, including shares, bonds, and property, in line with the family's risk tolerance and financial objectives. The SMSF also purchases a commercial property, leased back to their agricultural business, providing an additional income stream to the SMSF.

Upon retirement, Robert and Amelia start a pension from their Family SMSF. The income generated provides for their retirement needs while allowing the capital to continue to grow.

The updated Family Protection Trusts, Family SMSF, and Testamentary Trusts provide a secure and efficient way to transfer control and wealth to the next generation when the time comes.

By updating their outdated trusts and SMSF deed, the Stewart Family Office has created a comprehensive plan that provides improved asset protection, tax efficiency, a detailed succession plan, and dynamic strategies for wealth creation.

To find out where your Family Wealth is exposed and how much Value that we can add to your current situation then complete your
Complimentary SMSF Wealth Assessment today

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Financial services are provided by SMSF Wealth Pty Ltd ABN 57 663 011 309 which is a Corporate Authorised Representative 1304606 of SMSF Wealth Licensing Pty Ltd ABN 93 663 532 312 AFSL 547749

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Disclaimer: The information and any advice contained on this website is general in nature and does not take into account the objectives, financial situation or needs of any particular person. You need to consider whether the information is appropriate to your needs, and where appropriate, arrange an appointment to seek professional financial advice from a financial adviser prior to acting on this information.

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