Stay prepared when planning for blind spots – 2019 SA Private Business Day

Checking blind spots is crucial when advising clients. Here’s a preview of the 2019 SA Private Business Day.

The operating environment for private companies is increasingly competitive and complex. Many now investigating how to implement effective structuring and growth strategies, in local and global markets.

Julie Van der Velde, CTA, Principal and Founder of VdV Legal will be presenting at the 2019 SA Private Business Day at the Adelaide Convention Centre on Friday, 2 August.

Her session will take a practical look at planning for the risk, if a person in charge loses legal capacity - What if your client doesn’t die? Planning for loss of capacity.

Julie has spent over 20 years working with SME businesses in South Australia and interstate, with a focus on family business and intergeneration transfers. Julie has been affiliated with The Tax Institute since 2002, winning The Tax Institute’s SME Tax Adviser of the Year award in 2017.

“Elder laws and problems that arise around loss of capacity have been increasingly reported in the media in recent years, particularly in respect of elder care issues considered by the Royal Commission,” she says.

“It has been estimated that the number of people living with dementia will continue to increase over time.

“Inevitably some of these people will be our clients.”

She adds that advisers will need to be able to assist businesses where the person in charge becomes unable to make decisions, sign documents, access the bank, instruct the advisor, etc.

Delegates can hope to leave Julie’s session with a deeper understanding of the ways business and management issues are impacted on a key person’s loss of capacity.

Julie says “we will also discuss some of the tools currently available to manage these issues and how control of structures can be changed without the key person’s involvement.

“Attendees will gain the information they need to sit down with a client and start that first, very difficult, conversation about ‘what will happen to the business if you are unable to make the decisions?’ and how those issues can be addressed.”

Always check the blind spots

As in most areas of tax, checking all blind spots can be crucial when advising clients.

When asked about this area of practice, Julie says “the biggest blind spot is simply that most business people never consider how loss of capacity in a key individual might be managed.

“Frequently, there are no plans for this eventuality.

“Extensive estate planning can often ignore the issue altogether and the most carefully laid plans can simply fall apart when the client does not die!”

Julie adds that transfers of business ownership and control planned in the context of death may have significant tax and duty consequences if there is no death and may not even be possible in the form planned.

So, will we see you at the SA Private Business Day? Register now.

About Julie

Julie has two sons and a granddaughter who all live in South Australia. When not knee deep in tax she enjoys a good book with an even better glass of wine and is currently working her way through some of the Booker Prize winners.

Find out more about the SA Private Business Day on our website.


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