Tag Archives: business owner

What Business Owners Cannot Bequeath in Their Will

If you are a business owner, it is important to understand what you can and cannot bequeath in your will to loved ones or business partners. There are rules and regulations surrounding which of your possessions can be transferred through your will. Keep reading to find out what business owners cannot bequeath through a will.

Several ownership interests cannot be transferred in your will, including:

  • Property held in a Trust – Ownership rights for a Trust cannot be transferred to another person via your will. The beneficiary of the Trust will receive ownership for assets.
  • Property held in Joint Tenancy – Joint Tenancy is an equal ownership right, whereby you and your partner own an equal share in the property. Your half cannot be transferred to another person, and instead will be automatically transferred in its entirety to the other joint owner.
  • Superannuation accounts – you can nominate a beneficiary within your superannuation account. Your balance is distributed to this person and cannot be included in your will.
  • Beneficiary accounts – if you have a life insurance policy, you must nominate a beneficiary. The money will be transferred per your policy and cannot be transferred by requests in a will.
  • Digital property rights – the law does not allow you to leave passwords in wills for the transfer of digital accounts to a living person. It is best to ensure that all parties have administrator rights, so information or accounts are not lost.

It would be best if you kept this in mind when drafting up a legally enforceable will, as they can create complications in the future. Consult a professional to help you plan for those you leave behind. Contact The Farm Protectors today for peace of mind to your business and your family.

Look Out for These Business Changes in 2020

There are lots of changes happening this year, including new regulations, state elections, and overseas events like Brexit. It would be best if you kept an eye out for these changes, as they could have an impact on employers and business owners in 2020.

  • The Single Touch Payroll (STP) 12-month penalty waiver will finish at the end of this current financial year. This means that from 1 July 2020, penalties will be applied if companies fail to comply with the new digital reporting system. Small businesses face up to $1050, $2100 for medium businesses and $5250 for large companies. Make sure you have your lodgements in on time!
  • A new law came into effect from 1 January 2020! Employers are now banned from using any salary sacrificed contributions towards meeting their superannuation guarantee obligations, regardless of the amount employees elect to salary sacrifice. Employers are required to pay 9.5% of the employee’s ordinary time earnings (OTE) base, the amount before any salary sacrifices are made.
  • The Paid Parental Leave Act was amended on 1 January. The work test has been changed to allow more women to qualify. The government have extended the break between working days from eight to 12 weeks and now allow women to move their work test period if they stop work due to a workplace hazard.
  • From 1 January 2020, eligible employees with multiple employers can apply to opt-out of receiving super guarantee from some of their employees. This will help individuals to avoid unintentionally going over the concessional contributions cap.
  • Keep an eye out for the federal budget out in early May. The government is facing increased pressure to boost the economy, so there could be some positives for small and medium businesses.
  • There are several reviews and inquiries currently underway that may affect companies in 2020. These include the aged care royal commission, Insolvency Practices Inquiry, and a review into Supply Chain Financing. Findings will be handed down this year.

If you have any questions about how these changes could impact your business, please contact the team at The Farm Protectors today.