Relationships can cause friction and issues that call for practical resolutions to enable a family business to thrive. The delicate balancing act is often even more fragile for clients who re-partner and create blended families. Practitioners need to be attuned to possible issues and provide practical solutions to handle clients' second or third marriages, especially when there are children from different relationships. We need to consider numerous factors, such as:
- Who has control of family wealth through their roles as directors, shareholders, trustees, appointors, beneficiaries, and SMSF members?
- Is there an imbalance of power or sibling rivalry tied up with the business or extraneous to it?
- Who works in the business? Are they being appropriately compensated or are they pumping their earnings back into the business? Are some family members slogging it out in the business whilst others are simply along for a 'free ride'?
- What issues can arise when a client puts everything into their business, leaving no assets that can be dealt with separately?
- What issues can arise in relation to trust distributions? Leanne shares her wealth of experience to provide insight for practitioners to apply in helping our own clients navigate the minefield and accommodate various family members in a balanced and equitable manner. This practical session will focus on how to handle blended family matters, as demonstrated through the use of real-life examples to highlight the issues and provide potential solutions.