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Income Tax Laws – I

Notes Protection
A comprehensive analysis of their protection requirements was undertaken.
Brian is the primary income earner, and particularly with two young children, it is essential
that his income is protected in the event of illness, disability or death. We put the appropriate
level of protection in place for the appropriate term at the most competitive cost.

Estate Management
As Brian and Emma have no Will in place, we highlighted the serious implications that
this can have on their estate and their children’s welfare in the event of their untimely
death.
We held a number of meetings with them discussing the sensitive issue of their final
wishes and who they would like to perform certain roles e.g. the Executor, Trustee and
Guardian.
We worked with Brian and Emma in devising a financial model that provided the Guardian
to the children with access to funds on a regular basis and on a specific needs basis.
Personal Tax Planning
We provided Brian with a detailed breakdown of the level of tax he is currently paying
and how we can reduce this significantly through tax planning and restructuring.
Outcome
As a result of the Opes Wealth Trust planning exercise, Brian and Emma now have a very
focused and tax-efficient financial plan in place that is appropriate to their specific
circumstances. We have helped Brian establish a new company from which he now provides
his services. This new corporate structure will enable Brian to accumulate wealth much
more efficiently going forward. They also have the peace of mind that comes with knowing
that, in the unfortunate event of something happening either of them, they have a tax-
efficient and up-to-date estate plan that deals with how their children are looked after and
ensures that their final wishes for their estate are adhered to.
Benefits to operating in a company structure:
1. Limited Liability: This provides a safeguard for individuals against their personal
assets.
2. Tax Efficiency: A company can be a very tax efficient structure, both for transacting
business and also through creating wealth in a personal capacity for the directors
and employees through retirement planning. One of the major benefits of
incorporation is access to the lower tax rates that apply to a company’s profits, as
well as it being more economical to build up working capital in a company rather
than as a sole trader.
3. Corporate Identity: A company is a separate entity with its own sense of image,
stability, sophistication and credibility.

4. Raising Equity/Capital: A company provides individuals with the ability to raise
equity by selling its own shares to potential investors. This is on top of traditional
sources of finance such as loans which require interest to be paid.
5. Continuous Life: A company can survive its founders. It also provides some additional
comfort in the area of permanence of the business activity.

Contd...

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