One of the most important steps when taking the plunge into property investment is also one of the most overlooked parts of the process. Making sure your investment is set up in the correct structure from the beginning can ensure that serious, and expensive, ramifications are avoided down the track.
Many businesses are focused on the ‘now’ and in our current climate, that is completely understandable when life is about survival. However, when this current phase passes, we will revert to (a new or other) normal and the issues that have always faced business leaders will still be there.
Succession planning for farming families can be quite daunting and there certainly are some horror stories on how it can spiral out of control. The flip side is succession planning can be a very rewarding process for all involved if tackled with goodwill and respect.
In my previous article, I discussed transferring the family farm to a child without paying stamp duty. The next important step is to seek professional advice as to the capital gains tax implications if the farm was transferred.
Bad years on the farm are hard to take, but there are often enormous opportunities for positive outcomes in the area of tax planning and succession planning that can be of huge benefit to the farm’s future.
Family farms are part of the fabric of rural Australia.
Unfortunately the landscape is dotted by a large number of farms that disappeared from families who either had no succession plan or the estate plan was seriously inadequate.
Farming is a journey with the inevitable ups and downs, smooth roads, pot holes, straight stretches and the odd blind corner.
The process of succession planning, on the other hand can lead to a destination, be it good, bad or ugly.