Horizon by Pitcher Partners

Transition your wealth and protect your legacy

Our capability

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Let's have 'that' conversationYou’ve spent your life building wealth for you and your family to enjoy from one generation to the next, yet statistics show that around 70% of wealth transfers fail. The right planning and transition strategy today will ensure your legacy is protected and transitioned to the next generation effectively and efficiently.But it will require you to have the necessary conversations with your family – conversations that can prove challenging and emotional for you, as the custodian of the family’s wealth.

How we can help you with your transition conversationHorizon by Pitcher Partners is a range of complementary services that guide, support and mentor you, as the steward of your family’s wealth, to create a lasting legacy by building trust and integrity whilst maintaining family harmony.

We focus specifically on how to protect, grow and transition your wealth across multi-generations.We look at the legacy you are building for your family to enjoy today and into the future. We can support you in this work by leveraging our expertise in the areas of wealth management including: family governance and succession options, retirement management, asset protection, estate planning and trustee services, tax efficiency, private charity and other philanthropic strategies.

Key challenges

Ownership structure for the next generation

Communication between family members Transfer of leadership control

Liquidity for family members to exit Adequate capital for growth and retirement

Fair and equitable distribution of the wealth

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Superannuation

Wealth transfertrillion of wealth in Australia due to be transferred by 2030

$3.5 70%of wealth transitions fail

Financial and wealth management education

35% 56% 65%

of next generation prepared to receive wealth

of parents feel their children need more financial education

to deal with family assets

of parents want their financial advisors to assist with their

children’s financial education

Estate planning

54%of wealth custodians have a will in place 57%

plan to transfer wealth on their passing or when ill

>50% of a client’s wealth is lost when transferred from one generation to the next

>50% of Wills contested in Court are done so by family members

of all superannuation funds are self managed (SMSF)99.6%

$1.13m59

per fund in 596k SMSFs

= median age of SMSF members

70% of SMSFs have 2 members

2.7% predicted annual revenue growth (2018-2030)

Sources: Industry surveys, ABS, IBIS reports.

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Family wealth expertisePitcher Partners works with some exceptional clients, both in business and as individuals. We have specialised in providing services to the middle market, including high net worth individuals, their families and privately owned businesses for more than 25 years.

We are proud to include many of Australia’s most successful individuals, families and family businesses amongst our clients. This gives our team extensive and indepth middle market knowledge, expertise and skill set, and provides our clients with access to an unrivalled network of contacts.

Benefits of working with Pitcher Partners

Greater clarity when implementing your estate plan and wealth transition

Certainty and increased understanding giving peace of mind to all family members

Development of the family’s intellectual capital

Empowerment over entitlement for all generations

Increased long term growth of the family’s financial capital

Opportunity for the family to remain intact for future generations

Tax efficiency, asset protection, philanthropic options

Where you already enjoy a relationship with Pitcher Partners, we are able to leverage our existing and up to date knowledge of your affairs and wealth structure for the purposes of estate planning and associated advice.

CASE STUDY

Wider horizon servicesA retired successful businessman and his wife, with a blended family, had concerns regarding the veracity of their Wills. They ultimately wanted their substantial wealth to pass to support the surviving spouse, provide sufficiently for the children and to establish a charitable foundation.

We were engaged to review their Wills to ensure their legacy would be properly administered, while providing a level of asset protection and maintaining family harmony. Their wealth included investments held both here in Australia and off-shore, complex trust structures and a SMSF with benefits in excess of their Transfer Balance Cap.

By drawing on the expertise of the wider Horizon service team across estate planning, superannuation consulting, taxation, executor and trustee services and wealth management we were able to identify many issues with the existing Wills that exposed the beneficiaries to a range of risk areas including business, digital assets and domestic and international taxes.

We provided the clients with various solution options that would provide adequate protection of the family’s wealth, ensure the intended beneficiaries received what they were meant to receive in the manner they were meant to receive it, and that appropriate structures were put in place.

CASE STUDY

Estate planningA wealthy and successful individual with several commercial and residential property investments wanted to ensure the legacy he had built up over many years would be protected for his spouse, children and wider family members. We were engaged to review the newly created Wills to ensure everything was in order.

We quickly identified that many of the properties were not owned by the client, but held in several family trusts. An individual’s Will can only deal with assets that the individual owns, and that does not include assets held in a trust. This meant control of the properties held by each trust would have passed to a completely different group of people than the client intended.

We were able to implement arrangements to have some of the trusts, and the properties they held, pass to the control of the child chosen by the client. In other instances, we arranged for properties to be moved out of existing trusts into new ones that could ultimately pass to the control of our client’s desired beneficiaries.

Had our client simply proceeded with depending on his Will alone, his desired beneficiaries would not have enjoyed their intended benefit from the client's significant wealth.

CASE STUDY

Wider horizon servicesOur 90 year old client had a multitude of business interests, primarily in property and retirement village ownership. When undergoing an audit by the ATO and SRO the client approached us to assist with responding to, and reviewing, the business for compliance. We immediately identified the business was jointly owned by our client and his brother, who had passed away intestate 20 years earlier and no succession plan was in place. Our client’s wife had also passed away and his sole surviving daughter had no Will. We worked closely with our client to develop a wealth transition strategy involving estate planning, tax advice, family agreement, superannuation and investment advisory. As a result, the client received a reduced tax obligation, family harmony, pathway to business exit and is currently developing a strategy to satisfy his philanthropic intentions. In addition, Wills are now in place for both father and daughter.

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Your Horizon specialists

Michael HayTax Consulting PartnerFamily Agreement

Michael has extensive experience providing specialist taxation advice to private businesses and the families behind those businesses, including developing tax efficient inter-generational wealth transition strategies and associated family agreements.

Ben LethborgPartnerFamily Agreement/ Private Business and Family Advisory

Ben’s clients benefit from his extensive experience ensuring accounting and regulatory requirements are satisfied without risk, in a timely and commercial manner, whilst identifying opportunities and ensuring client’s affairs are managed tax effectively. As this has often led to growth of wealth outside of the business for his clients, Ben is also actively involved with the families that own those businesses, including estate planning, cash flow management and superannuation.

David FouldsClient DirectorEstate Planning/ Private Business and Family Advisory

David is the principal provider of Estate Planning services for clients, leveraging his experience in private client, business and accounting services and his 20 years’ providing superannuation consulting services. For the last six years, David works exclusively in helping clients develop estate plans that deal with all of a client’s wealth, wherever and however it is held, in a manner that is appropriate to the client’s circumstances and that meets the client’s wishes and desires.

Noel FinckSenior ManagerExecutor and Trustee Services

Noel works closely with clients to facilitate the transfer of their wealth according to the testamentary documents that flow primarily from their estate plans. This includes assisting executors in dispatching their duties to an exemplary standard. Noel draws on his core area of expertise in providing Executorial and Trustee services – acting as Executor when someone passes away and as a Trustee of any subsequent testamentary trusts including minors’ trusts. He ensures all the assets of the estate are located and protected, obtains probate, invests the assets and distributes income and assets to beneficiaries in the manner in which they were intended.

Brad TwentymanDirectorSuperannuation/Private Business and Family Advisory

Brad brings to his clients his expertise in structuring complex investments in superannuation, as well as the taxation of contributions, investment income, benefit payments, exempt pension income and deductibility of fund expenses. In addition, Brad assists clients with their insurance management requirements.

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Pitcher Partners Horizon services include:

Family Agreement and Advisory Superannuation and Retirement Management

Estate Planning/Wealth Transition Executor and Trustee Services

Related services include:

Taxation Advisory Investment Advisory/Wealth Management

Philanthropy/ Private Charities

Business Succession Valuations

Horizon services

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Family Agreement and Advisory

• Creating a Family Agreement, to agree on how to manage and transition wealth from generation to generation while ensuring family unity

– Separating business and family matters – Methods to regulate the interaction between the two

• Mentoring and wealth management education

• Advising on distribution / dividend arrangements

Superannuation and Retirement Management

• Ongoing oversight and support in superannuation/retirement management matters, including:

– Identifying opportunities and pro-active planning advice – Assistance with implementing complex transactions – Minimising tax risks – Maintaining consistency and integration with broader estate plans

– Addressing legislative change and disruption

• Designing and maintaining prudential policies and procedures, including:

– Governance frameworks and management committee terms of reference

– Risk management policies and procedures – Maintaining skills and knowledge needed to facilitate good outcomes

– Investment mandates – Managing conflicts

Estate Planning/Wealth Transition

• Making a plan to protect and pass on your wealth in a way and at a time that you want

– Identifying and addressing key issues – Arranging transfer of assets not controlled by a Will such as those held in Trusts and Superannuation

– Implementation of family objectives, while protecting wealth in a tax efficient manner

– Reviewing the plan to accommodate changing circumstances and legislation

Executor and Trustee Services

• Appointment to the role of Executor and/or Trustee of your estate

– Professional, impartial, independent administration of your estate

• Assisting other appointed Executors in the estate administration

Taxation Advisory

Advisory role on a range of taxation matters, including: income tax and taxation of trusts, CGT, exemptions/rollovers and small business concessions, Division 7A loans and commercial debt forgiveness; transaction taxes including stamp duty and GST for business and property transactions; and international taxes.

Investment Advisory

Independent and personalised wealth consulting, portfolio construction, investment advisory, financial planning and investment management and administration services to private clients, family groups, corporate and personal superannuation funds.

Philanthropy/ Private Charities

Establishment and ongoing management of private ancillary (philanthropy) funds (PAF) enabling individual or family to donate capital to a trust to support charities over the long term. It is a means to structure your philanthropy that is efficient and tax effective, while also offering a way to involve family members in creating and maintaining a legacy for future generations.

Business Succesion

Planning and strategic services to support the building, retention and transition of businesses to new owners and structures.

Valuations

Leveraging real market perspectives on value to deliver realistic valuations that make sense. We utilise clear evidence, facts and opinions that can withstand intense scrutiny and adopt fit-for-purpose methodologies.

Get in touch...

CapStat_Horizon_181123

MELBOURNE+61 3 8610 5000 partners@pitcher.com.au

ADELAIDE+61 8 8179 2800 partners@pitcher-sa.com.au

SYDNEY+61 2 9221 2099 sydneypartners@pitcher.com.au

BRISBANE+61 7 3222 8444 partners@pitcherpartners.com.au

PERTH+61 8 9322 2022 partners@pitcher-wa.com.au

PITCHER.COM.AU

NEWCASTLE+61 2 4911 2000 newcastle@pitcher.com.au

Pitcher Partners is an association of independent firms. Liability limited by a scheme approved under Professional Standards Legislation.