You need to explore the key issues including benefits and risks of each of the above structures
You need to prepare a report to the clients above addressing the following:
A. You are required to consider the following five structures and the suitability to their needs:
1.Company
3.Discretionary trust
4.Unit trust
5.Self Managed Superannuation Fund (SMSF)
You need to explore the key issues including benefits and risks of each of the above structures. Commenting on all the relevant business and estate planning issues and what the key risks are that could be faced by the four partners and their families and address possible strategies and solutions to mitigate the relevant risks.
You need to be specific and relate to their (Steve, Jamie and Roberto’s) personal circumstances from the following perspectives:
In your answer, you need to make a clear recommendation as to Which of the above structures would you recommend for Steve, Jamie and Roberto’s to adopt in their business going forward and why? Provide a clear justification of your answer, advising the partners on the key risks or concerns (if any) resulting from changing the business structure from the existing partnership structure.
Be specific in your discussion and suggested solutions by relating specifically to the clients.
Steve, Jamie and Roberto are excited about the growth in the business and future opportunities expanding to the other states, however, recently one of their close friends has passed away after suffering a heart attack. They have since been talking and are more concerned with what strategy they should have in place should one of them prematurely die or become disabled. Explain to the partners what can be done and the possibility of having a buy/sell arrangement in place between them. In your answer discuss what is a buy/sell arrangement and its purpose and benefits. Also comment specifically on the possible structure they could have for the buy/sell arrangement and how it can possibly be funded. Be specific in your advice
Answer preview You need to explore the key issues including benefits and risks of each of the above structures
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