“Five Steps for Succession Success is a collaboration between Kelly Kelly Legal and Financial Services SA”
By Kelly Morgan
“We thought we were doing the right thing by gifting the land to our son, but now our son will have to go through the whole process again when he wants to pass the land on to his kids. We didn’t know there was a smarter way of doing things for the long term.”
For many farming families, the primary focus of your attention is on the operational side of your business, so when it comes to starting the planning process for the future, you may not be aware of the importance of your business structure when it comes to succession planning.
One of the biggest challenges for farming families who are starting the succession planning process is the fear of seeking legal advice and concerns about the cost. But if you’re running a multi-million-dollar business, doing nothing or taking matters into your own hands may not be the best or least expensive solution.
The complexities associated with minimising tax and maintaining flexibility for transitioning assets while still running your business can be overwhelming. When planning for the long term, establishing the most appropriate business structure is vital.
There are two clear advantages in seeking legal advice when it comes to considering your business structure:
#1 Identifying available concessions and minimising your tax
Actions taken today may not have an immediate effect on your tax liability, but may cause unnecessary tax obligations or expenses for the next generation many years ahead. It’s important to look at the long-term effects of how you structure your business.
In collaboration with other financial professionals, we can help you:
- take advantage of stamp duty exemptions;
- maximise CGT discount and small business CGT concessions;
- understand land tax obligations or CGT implications, such as main residences not being exempt when purchasing farming property;
- set up agreements to ensure the business has access to primary production concessions such as Farm Management Deposits.
#2 Protecting your assets
When you work so hard to build your personal assets and business, you want to make sure your assets are protected and transferred as per your wishes. Succession planning should be considered an investment into protecting your future, your plans for the business and personal wishes.
Succession planning is about coordinating your estate planning and property ownership strategies, whether that be by separating your personal and business affairs, reducing your exposure to creditors or liability for debt, or creating certainty around ownership when it comes to changing family dynamics and transitioning ownership and control of the business.
With a specialisation in succession planning for farming families, the team at Kelly Kelly Legal have years of insight and experience helping families achieve a smooth transition. We understand the complexities when family relationships are closely aligned and are adept at identifying solutions for your family circumstances. We are always ready to answer your questions and outline the best way forward.
Starting your succession process does not need to be difficult or cost the earth. We invite you to arrange an appointment to answer your queries about how to get started. Please contact our team on 08 8664 1162 or email firstname.lastname@example.org
Read more about Step 2: A structured approach – “Everyone at the table” Taking a structured approach to succession planning by Phillip “Dibbo” Dibben (Financial Services SA)
Working in collaboration for a number of years, Financial Services SA and Kelly Kelly Legal offer insight and expertise in rural and family farming business succession planning. Accustomed to opening up meaningful discussions, we cut through technical-talk in favour of straight-talk, to offer integrated solutions that consider the often-complex nature of succession plans to incorporate business transition arrangements, wills and estate planning and retirement and superannuation planning.
Financial Services SA is a multi-discipline professional services practice offering farm and business consulting, financial planning, specialist rural finance and mortgage broking. Financial Services SA has a particular interest in developing and implementing practical and achievable succession plans and integrated solutions to consider all aspects of personal, business and farming lives.
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