I cut my teeth on taxation strategies and in fact trusts – big $billion trusts for large fund managers.  But then I fell into superannuation and then SMSFs and as they say the rest is history.  Now I don’t know about you, but I need innovation and new growth markets.  Working in a mature market stifles innovation – as most strategies are commonplace, and to be brutally honest business valuations come back to the mean.  On the other hand, seeing a potential trend, particularly a niche, building and growing it means continuous innovation as advisers ask questions, which leads to development of the niche and on and on it goes.

SMSFs are big.  But not as big as the transfer of estate wealth over the next 20 years which is projected to be $3 trillion.  So that means a lot of asset protection from Family Provision claims and a lot, I mean a lot of lineage and bloodline planning.  That is not really a new area for me, but I never really focused on it.  However, the disasters that I have seen, the challenges, the litigation and the heartbreak for families, which could so easily be protected is like a siren calling me in the night.

So in that vein, let me give you two great strategies that you are probably not using but can mean the absolute world to your clients and for that matter your family.  I will start with a simple one and then move onto the final one that will knock your socks off.

However, I have to declare an interest in this from the outset.  In the past I have built a lot of strategies and talked about them to accountants, planners and advisers who have listened, been motivated, got back to the office and then not known how to put them together.  Innovation and strategy without process is not particularly useful.  So the strategies you see below are on the LightYear Docs platform.  I will give you their cost – from $99 up and more importantly what advisers are charging for the strategy.  Win – win – win.

  1. SMSF Family Loan

Parents and grandparents have built wealth in their SMSFs and also family trusts for tax and asset protection purposes. With cash rates at less than 2%, they are looking for alternatives.  One idea is for the trustees of family trusts and SMSFs to lend to related parties.  For discretionary trusts and for that matter bucket companies it is not a big idea (particularly as Division 7A has codified it).  However, for SMSFs the prohibition on lending to members and relatives in section 65 of SISA 93 has seen families and their accountants not even peek into the strategy.  Here’s the bottom line – a SMSF can lend to a related company or discretionary trust provided all terms and conditions are at market value.  Mum and Dad with a $2M SMSF can lend to their son’s discretionary trust and it can be for the purpose of acquiring a business, for use in a business or buying an investment property or residential property for the children to live in.  Section 65 does not apply but section 84 and in particular section 83 and 82 of SISA 93 come into play (the in-house assets test) so it is important to monitor the 5% rule.  With a $2M SMSF it means a loan of up to $100,000 can be offered at market value terms – good for the children and great return for the parents.

This product is offered on the LightYear Docs platform for $99 and includes the loan plus mortgage deed to ensure the bona fides of the transaction.

What to charge? To complete the documentation and if it is a SMSF ensure that there is an investment strategy review – the minimum fee is $2,500 and up for larger loan amounts.  The time on completing the documentation is 10 minutes so it is a very high return on time.

  1. The Protector

If you die and leave assets in an estate, or during life something happens and the government or the lawyers come after you, the first and best case scenario is to have nothing for them to latch onto.  A “no win no fee” lawyer won’t waste their time on no assets as no assets means no $.  So the idea is:

  1. Determine the equity in assets held in the individuals name, including shares, cars, home and personal assets
  2. Obtain a solvency certificate from an accountant that the individual is solvent
  3. Transfer the equity in the assets into a Asset and Lineage Protection trust in a way such that there is no CGT or stamp duty
  4. Provide a loan back of the equity to the individual or to a discretionary trust (preferred)
  5. Ensure mortgages and personal guarantees for security

Plus there are a few more bells and whistles.  A very effective asset and estate planning strategy.  The complete set of documents for this transaction will be released by LightYear Docs on 12 February at 10am AEDST.  There are more than 8 documents including two sets of trusts, loan documents, mortgage deeds and some proprietary documents that we will release on the day.  The total cost for the entire package is $450.

You can be at the launch of this exciting new LightYear Docs strategy automation by registering for the webinar on 11 February at 10am AEDST here: The Protector Launch

What to charge?  Generally this product, in different forms is available for a minimum of $3,500 and up to $20,000 for more than a $1M in equity to be protected. The time on completing the documentation is 20 minutes so it is a very high return on time.

Now there are two great strategies your clients will love and are all ready for you to implement in minutes with the LightYear Docs automation. If you’re not on the platform, contact me on 0418 735 491 or support@lightyeardocs.com.au.


– Stay Strategic!