Succession Planning for Your Business or Farming Practice

Planning is vital for the on-going survival of any business or farming practice. Developing and implementing a Succession Plan is an integral part of that planning process. Lets face it, you will not own and operate your business or farm forever, at some time you will leave your farm or business whether that be way of sale, retirement or ill health. A succession plan sets out who will take over your business or farm, providing some degree of certainty and continuity while helping minimise disruption to your business when that day arrives.

Certain questions need to be answered in developing an appropriate succession plan for your business or farm including:

• Who will carry on your business or farm?
• How will you fund your retirement after you leave your business or farm?
• What provisions will you make (whether through your will or otherwise) for those members of your family not involved in the business or farm?
• What is the most effective mechanism for transferring business assets while still providing security for you and your spouse?

The solicitors at Cater & Blumer can help you develop and implement a succession plan that reflects your wishes and is suited to your unique circumstances. Such a plan may well involve:

• Planning for your retirement
• Maximising the optimum time to sell or transfer your business;
• Transferring your business and assets to family members using the most tax effective means;
• Making fair and appropriate provision (which may not be equal provision) for family members not involved in the business or farm;
• Drafting your will to give effect to your intentions including the incorporation of Testamentary Trust, if required;
• Providing protection for business assets as well as providing security for you and your spouse after you leave the business or farm including appropriate use of superannuation.

For a succession plan to be successful, consideration needs to be given not only to your needs, goals and security, but also the needs goals and security of others involved in the process, be they family, or a business partner or employee who will buy your interest out over time. Cater and Blumer can help facilitate that consultation process. Finally we can also consult with your accountant, financial adviser and banking institution to ensure the best result for you.

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