Personal Succession PlanningWill your assets go where you want?

Important Notice

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Altus Financial is an Authorised Representative of Apogee Financial Planning Limited ABN 28 056 426 932 (AFSL number 230689), 105 Miller Street North Sydney, an Australian Financial Services licensee. Apogee Financial Planning Limited is associated with issuers of MLC Limited and MLC Life and National Australia Bank products.

Start with where you want to be then let us help you get there

• Controlling everything that is controllable• Making the most of whatever life throws at you• Developing a solution designed for you and you alone• Creating a clear picture that will guide you through an ever-changing

financial landscape

Wealth Management

Adam MontanaSenior Client AdviserWealth Management

Values & Objectives

What is important to you?Lifestyle ideals & resulting financial objectives

Legacy & estate wishesPlans & hopes for your children’s future

Difficult family issuesProtecting the vulnerable

Ongoing

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Personal Succession … How does it all work?

Advice Strategy

Financial shortfall, policy ownership, beneficiary decisions, estate & non estate assets

Legal Documents

Wills, testamentary trusts, super trusts, power of attorney,

guardianship, letter of wishes

Your personal succession conversation

Kylie33

Mike35

Alvin7

Justin3

Theo3

Jim C72

Joy C70

Brian E65

Joanne E64

Jennifer35

Ellen12

Operating Company

Service Company

FamilyTrust

Trust Deeds

WillsEPOAs

BusinessOwners’ Agreements

Personal SuccessionSome statistics to consider…• 54% of people don’t have a valid will

Source: NSW Public Trustee survey 2008

• 33% of first & 60% of second marriages end in divorce

• Number of step & blended families has grown by 50% since 2000

• 33% of marriages involve one previously married personSource: ABS. Figure is for all marriages entered into in 2000-02

• Only 45% of boys and 24% of girls expressed high satisfaction with their relationship with step-parents

Source: Australian Institute of Family Studies

Common Personal IssuesDon’t worry about it – Sort it out…• Retaining family assets in the bloodline

• The “son in law/daughter in law” I don’t want to run away with my assets in event of divorce

• Multiple marriages and stepchildren

• Worrying about a child who cannot manage assets eg drug/alcohol addiction, disability, immaturity

• Avoiding family disputes

Some business statistics to consider…• $3.5 trillion family business wealth changing hands in next decade

Source: MGI Boyd Family & Private Business Survey 2006

• 61% family business owners plan to retire in the next 10 years

• 22% say they have a formal succession plan

• 58% aged over 50 years

• 33% survive to 2nd generation, and only 10% to 3rd generationPoor succession planning is the primary reason for this

Source: KPMG and Family Business Australia Family Business Needs Survey 2006

• 9% of multiple owner businesses have funded Buy Sell in place

• Only 22% of owners had sought any succession adviceSource: Cameron Research 2008

Three parties work together for the complete solution

• Your Altus Accountant: knows you extremely well, usually knows your family issues, knows your entity structures and asset & debt positions, manages taxation implications, may provide any business valuation required, briefs your Altus Adviser, helps manage funded succession & restructuring.

• Your Altus Adviser: facilitates the entire process, identifies your personal and business objectives, identifies and covers insurance-funded trigger events, assesses policy ownership for estate and tax issues, briefs and facilitate legal firm, ensures your personal estate links to a business insurance plan.

• Legal Professional: prepares shareholders’ agreements, buy/sell agreements, estate and trust documentation. Liaises with your Altus accountant and adviser. Identifies any additional estate risks in the business structure.

Personal Succession Planning ProcessStep 1

Clarify your values and objectives

Step 2

Formulating your advice strategy

Step 3

Present your succession blueprint

Step 4

Implementing your advice

• Understand what is important to you

• Identify your lifestyle ideals and resulting financial objectives now and beyond retirement

• Understand who the important people in your life are

• Explore your legacy and estate wishes

• Identify your plans and wishes for your children’s future

• Discuss difficult family issues and concerns

• Gathering the right information about your current

• Identify issues that may arise through the implementation of your succession wishes

• Identify the appropriate strategies to protect you and those you care about

• Consider the ownership structure of estate and non-estate assets

• Identify the people in your life you trust to carry out your wishes

• Develop a comprehensive estate plan to meet your legacy objectives

• Present our recommended strategy and achieve your life and succession objectives

• Explain how our strategies can help you meet your protection and succession goals

• Explain the impact of changes in your life, the industry and the law on your succession blueprint

• Facilitate meeting with legal professionals to prepare the appropriate legal documents

• Inform you and your family of the procedure should anything change for better or for worse

Who is involved?• You• Your Altus Adviser

Who is involved?• You• Your Altus Adviser• Your Accountant• Legal Professional

Who is involved?• You• Your Altus Adviser• Legal Professional

Who is involved?• You• Your Altus Adviser• Legal Professional

Where do you sit?

• I am unsure of what goes where

• I am nervous of what will happen when I die

• I am confused with all the jargon

• I know I should sort it out, but it seems too hard

• I am confident that my plans are in order

• I have peace of mind that my estate will be administered in line with my wishes

• My estate plan addresses adverse tax consequences

• I am confident my family will receive the best financial outcome if I die

Don’t worry about it – Sort it out…

Peace of Mind

Effective transfer of wealth

Take worry away from loved ones