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Alternative Business Agreements
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Business Insurance Trust Agreement(Complete Succesion Plan - Single Policy Owner) One Page, One Policy Succession Plan This is the standard Agreement that allows all Business and Personal Cover to be included on One Policy (a Complete Succession Plan). It deals with all Cover (including Debt Reduction and Key Person Capital Cover) securely and tax-effectively. Complete Succession Plan It is not necessary for each Business Person to have all of the Needs in order to derive a benefit from the One Page, One Policy Strategy or Complete Succession Plan. The Strategy will benefit most Business People who have any two or more of the Needs. Simple Succession Plan It can also be used for Business People who only require an Asset Strategy or a Simple Succession Plan.
Complete Succession One Policy Worksheet Click here to see a Risk Analysis Worksheet completed for a Complete Succession Plan held on One Policy pursuant to the terms of a Business Insurance Trust Agreement.
Transfer of Existing Policies to Trustee One or more existing Self-Owned Policies can be transferred or “parked” under the roof of the Trust, if there are health issues with respect to any of the Lives Insured. If the Policy is transferred to the Trustee by the Life Insured, the Life Insured continues to be the “original beneficial owner” of the Policy for CGT purposes (so that the transfer does not have any adverse CGT implications).
Identity of Policy Owner and Trustee The Trustee is usually the Clients' Business itself or one of the entities within the Business Structure (preferably a Company). IGS does not use an Institutional Trustee Company. Click here to read about your choice of Trustee.
Client Summary of Agreement Click here to see a brief Summary of the purpose and effect of the Agreement.
Benefits of Agreement Click here to see a brief Summary of the benefits of the Agreement.
Fixed Legal Fees The Fixed Fee charged by IGS depends on the choice of Agreement. Click here to see the current Fees for all Agreements and Services. These Fees apply subject to the Legal Fee Policy.
Concessional and Reduced FeesThe IGS Legal Fee Policy offers substantive reductions in the Fixed Legal Fees to:
Concessional Fee Structure The Concessional Fees only apply to Clients of Advisers with a current Marketing Licence which entitles the Adviser to use the IGS Adviser Support System. The Adviser Support System requires an Adviser to undertake training, which enhances their ability to give Succession Planning Advice both time- and cost-effectively. Click here to read more about the Concessional Legal Fees. Timeframe for Payment of Concessional Fee The Concessional Fee is only available if complete instructions and payment are received before the Policy Owners apply for the Cover.
Standard and Reduced Legal Fees The IGS Legal Fee Policy distinguishes between Standard and Reduced Fees. The difference between the two Fees is usually $440. The difference reflects the extent to which the IGS Documentation Procedure has been complied with. Click here to read more about the Reduced Fees. Availability of Reduced Fee The Reduced Fee is only available if complete instructions and payment are received before the Policy Owners apply for the Cover.
Concessional Legal Fees (Current Licence) Legal Fee (Up to Four Individuals) Standard Legal Fee: $3,410 Reduced Legal Fee: $2,970 NSW and Victorian Agreements In the case of NSW and Victorian Agreements, the Business will also need to pay Stamp Duty of $220 in addition to the Standard Legal Fee. IGS will bear the cost of this Stamp Duty, if the conditions of the Reduced Legal Fee are satisfied.
Non-Concessional Legal Fees (No Current Licence) Legal Fee (Up to Four Individuals) Standard Legal Fee: $3,850 Reduced Legal Fee: $3,410 NSW and Victorian Agreements In the case of NSW and Victorian Agreements, the Business will also need to pay Stamp Duty of up to $550 in addition to the Standard Legal Fee. IGS will bear the cost of this Stamp Duty, if the conditions of the Reduced Legal Fee are satisfied.
Legal Fee (More than Four Individuals) The above Fees apply for the first four individuals. There is an additional Fee of $275 per individual for each individual exceeding four individuals.
Additional Fact-Finding Fees It is not always possible to complete all of the details of the Business Structure and Liabilities of the Business in the Client Meeting or Teleconference. If the information is not supplied in the Questionnaire, there will be an additional Legal Fee of $440 to collect the information from the Business or its Advisers, review it and incorporate it into the Succession Plan and Documentation. Click here to read more about the Additional Fact-Finding Fees. Any Variation of Incomplete Draft AgreementThere will be an additional Fee for the finalisation of an incomplete draft Agreement not finalised within six months of the first draft:
Failure to finalise any Agreement promptly can have serious adverse commercial, legal and taxation implications for the Business and the other parties to the Agreement.
Original Beneficial Ownership of Policies The Policy Owner is intended to hold the Policy on behalf of the Beneficial Owner (usually the Life Insured) on the terms of a Trust Agreement. As a result , any delay in the instructions to prepare the Trust Agreement can result in Capital Gains Tax being paid on the Insurance Proceeds at the time of a subsequent claim. Click here to read about the importance of establishing the Original Beneficial Ownership of the Policies in accordance with the IGS Documentation Procedure.
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Adviser Tip Trust Ownership can do everything that Self-Ownership can do, but Self-Ownership can't do everything that Trust Ownership can do.
Ian Gray travels to most capital cities regularly throughout the year and is available for Meetings. Please click here to see his availability in Brisbane, Sydney, Melbourne, Adelaide and Perth. Please contact us to arrange an appointment or teleconference. |
