For businesses

Key Person Protection

If you are a business owner, have you ever thought what would happen if you or a key employee unexpectedly died or was seriously incapacitated?

Aside from the massive impact upon the person and their family, have you thought about the immediate and long term financial impact upon the business that this would have?

Small business is particularly vulnerable because a key employee’s unexpected departure, immediately affects the business’ capacity to generate income.

Having the right Key Person Protection solution can provide the business with a “capital injection” which can be used to

  • pay for the recruitment or training of a replacement person;
  • have cash available for the payment of fixed business overheads and expenses;
  • repayment of business debt;
  • cover lost income.

At Lumen, we help business owners understand the risks and provide solutions so that the business is able to keep afloat and running during such a catastrophe.

Business Ownership Protection & Succession Planning

Many Business Owners do not have any succession plans in place on how to deal with the forced and unexpected departure of a business partner, be it due to death or incapacity.  Business Owners are usually unaware of the dire consequences of not having a clearly documented plan in place (think of it as a Business Ownership Will).

The agreement must be clear with how each partners’ “ownership” of the business is dealt with before such an event occurs.  In simple terms, the agreement should detail:

  1. The value of each owner’s equity/shares in the business.
  2. The trigger events for the payment to the exiting business partner (or to the family/estate if due to death) in consideration of the transfer of the business equity/shares to the remaining business owners.
  3. How will the Business or remaining business owners fund the payment, via insurance or self-funding?

This very complex area needs thorough and detailed consideration.  At Lumen Financial Strategists, we have a comprehensive solution for clients that covers the succession plans, ensuring the legal agreements prepared by expert Lawyers are in place, organising funding through insurances (if required), and of course, assisting clients with managing the process should an event occur.

Self Managed Super Fund & Acquisition of Business Property

This is a complex area and SMSF Trustees must ensure that all the regulatory requirements are met to ensure that the SMSF’s compliance status is not jeopardised.

At Lumen, we provide clients a thorough understanding of the benefits and potential risks of this strategy.  We ensure the correct structure and funding is put in place (if borrowing is required).  This provides clients the peace of mind that the complex requirements are met.

Employee Services

We are able to assist employers with advice to their employees on Salary Packaging and Choice of Super Fund.

If an employee has a Workers’ Compensation redemption, Lumen Financial Strategists can provide the appropriate advice to the employee to satisfy the requirements under the Workers’ Compensation Financial Advice Certificate.

5 minute financial health check to identify key areas that may concern you

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