Description of the Case Study
John Smith runs his trading company as a sole director. He has ten staff and is very hands-on, but his staff does know what to do to keep the business running. He is also the director of the trustee company for his family trust and self-managed super fund. John dies in an accident and leaves behind a business, a wife, and two young children.
John’s family wealth is exposed as are all his structures. Who will pay the bills? Will his family be able to access any money – even for the funeral? And this is only the tip of the iceberg – wait until the bank starts to threaten foreclosure on the family home from lack of funds. But John’s accountant has put in place the Successor Director solution for all his companies and on John’s death, his brother Nigel is appointed as Successor Director the next day to keep an orderly transition of the business, the family trust, and the SMSF. The funeral is paid for and ongoing income is paid to the family.
