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Case Study

Scenario 1:  Dad has verbally told his children that the Business will be left to his son, and his personal assets will go to his daughter. No one wants to think about Dad leaving the Business or his eventual passing away, so the sensitive conversation about formal arrangements is avoided. We are family, all will be ok! 

In reality, without a legal document, this verbal arrangement can be fraught with problems. The family assumes the Business will pass on according to the will, not realizing it’s legally separate and governed by a family trust. Dad does not own the Business directly. This leaves a fragmented and unplanned outcome for all concerned.

Need advice or if you want to have the hard conversation, we are here. Contact Blackburn Accounting, your Family Business Specialist, we can help you with Succession Planning, Financial structures, Strategic Planning and more! 

Scenario 2:

Dad, Jack, founder of the Business, a local hardware store, recognises the importance of Business structures in providing a clear framework for the Business unit.

This structure includes its legal protection, governance, operation, and long-term preservation.  This well-defined structure supports tax arrangements, decision making, managing liability, and succession planning to aid both the Business success and family harmony. 

He has formalised his wishes in the necessary legal documents to protect personal assets separating them from business debts and legal claims.  He has ensured that his will and Business Planning are clearly and legally articulated. His son will inherit the Business and daughter his personal assets. Everyone is happy with the security this provides.