Risk Management
RISK MANAGEMENT
Ring fencing your shareholding
Golden handcuffs for your key and star employees
Estate planning with Trusts & Wills
Buy/Sell Agreement
Is a legally binding contract among business partners or shareholders that outlines the procedures for buying out a partner's share in the event of certain triggering events, such as death, disability, retirement, or voluntary exit. This agreement is essential for ensuring business continuity and protecting the interests of remaining owners.
Defferred Compensation
Involves strategies that allow employees to postpone receiving a portion of their income until a later date, typically retirement. This planning is particularly beneficial for high earners seeking to reduce their current taxable income while saving for the future.
Trusts & Wills
Are essential estate planning tools that help individuals manage their assets during their lifetime and dictate how those assets will be distributed after death. Both serve different purposes but are crucial for ensuring that one's wishes are honored and minimizing potential disputes among heirs.
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Key Components:
Valuation Method: The agreement specifies how the business will be valued at the time of a buyout. Common methods include fixed price, appraisal, or formula-based valuations.
Funding Mechanisms: It often includes provisions for funding the buyout, typically through life insurance policies, which provide liquidity to purchase the departing partner's share without straining the company's finances.
Triggering Events: Clearly defined events that prompt a buy-sell transaction, ensuring all parties are aware of when and how the agreement will be activated.
Transfer Restrictions: Guidelines on how shares can be transferred or sold to prevent unwanted third-party involvement in the business.
A well-drafted Buy/Sell Agreement helps mitigate disputes among partners and ensures a smooth transition during ownership changes.
read More
Key Components:
Valuation Method: The agreement specifies how the business will be valued at the time of a buyout. Common methods include fixed price, appraisal, or formula-based valuations.
Funding Mechanisms: It often includes provisions for funding the buyout, typically through life insurance policies, which provide liquidity to purchase the departing partner's share without straining the company's finances.
Triggering Events: Clearly defined events that prompt a buy-sell transaction, ensuring all parties are aware of when and how the agreement will be activated.
Transfer Restrictions: Guidelines on how shares can be transferred or sold to prevent unwanted third-party involvement in the business.
A well-drafted Buy/Sell Agreement helps mitigate disputes among partners and ensures a smooth transition during ownership changes.
read More
Wills and Trusts are essential components of estate planning, allowing individuals to manage their assets effectively during their lifetime and dictate how these assets will be distributed after death.
Wills:
A will is a legal document that specifies how an individual's assets will be distributed upon their death. It can also appoint guardians for minor children and name an executor responsible for managing the estate.
In Singapore, wills must comply with the Wills Act and can be contested in court if not properly drafted or executed. It is advisable to have a lawyer draft or review your will to ensure its validity.
Trusts:
Trusts allow individuals to place their assets under the control of a trustee for the benefit of designated beneficiaries. This arrangement can provide greater control over asset distribution and help avoid probate.
In Singapore, trusts can be revocable or irrevocable, impacting how assets are managed during one's lifetime and after death. Trusts also offer privacy regarding asset distribution since they do not go through probate.
Incorporating both wills and trusts into estate planning ensures comprehensive management of assets, providing peace of mind that one’s wishes will be fulfilled while minimizing potential disputes among heirs. Engaging legal professionals familiar with Singaporean laws is crucial for effective estate planning.
