Case Study No 8 – Succession Planning & Asset Ring Fencing
First Generation business entrepreneur having exposure to large Infra projects and NBFC. Two Sons actively involved in Business and one son was running his own business and daughter was not involved in the business. Patriack wanted to ring fence the assets from any internal and external litigations.
Family Tree:
Assets:
- Business Interests:
- Ownership & Management of Large Infrastructure Project
- NBFC
- E Commerce
- Celebrity Management
- Family Assets:
- Residential & Commercial Properties
- Landholdings
- Financial Investments
- Jewelry
- Listed Company & Unlisted Company Shareholdings
Objective of Family:
- Asset Protection
- Succession Planning
- Common basket for management of all assets.
- Personal Properties to be owned in individual name.
- Business continuity to be protected at all times
- Proper distribution to beneficiaries without disputes
- Maintaining the legacy
Recommendations:
- Advising and structuring of Will for:? Mr. X & Mrs. Y
- Formation of a Family Trust:? Transfer of all the family assets (Movable) to the trust, for e.g. Equity holdings, Fixed deposits, Bonds, Bank accounts, etc.
- You can also assign all the shares in companies to the trust.
- Use the trust as an Asset Protection tool.
- Family contingency clauses can be taken care.
- Intra Family Share Holding Agreement
- Investment Policy
- Voting Right Policy
- Dividend Policy
- Exit Policy
- New Business Initiative Policy
