Macquarie Group Services (MGS) and MGS Private have been looking after High Wealth Individuals (HWI) for more than 20 years. In that time both MGS and MGS Private have experience in what HWI look for in terms of structuring advice and overall tax and financial advice.
Investment Structuring Advice
The most significant difference is that HWI's look for bespoke solutions for their investment asset structures.
This includes:
- Property acquisition structures that consider landholder consequences, debt/equity calibration, debt redraw and ability to split and clone structures as the need arises,
- Not using the one size fits all trust and other structures ordered over the internet,
- Using accountants and lawyers as conduits to expert advice and not relying on the limitations that arise within a single firm,
- Structuring business entities so as not to cause Division 7A issues,
- Applying for ATO & State Revenue binding advice where appropriate,
- Establishing entities with succession features for the next generation,
- Seeking Counsel's advice for large transactions.
Private Asset Advice
- The use of debt laden trusts to fund private asset acquisitions including the family home, holiday home and children's homes,
- Using Bank of Mum and Dad Trusts to assist children when acquiring property,
- Borrowing in trusts to fund distributions for the acquisition of private assets,
- Using the refinancing principle to minimise non-deductible debt,
- Maintaining the CGT Principal Residence Exemption across all homes even when a former residence is rented,
- Placing most assets or loans over private assets in Succession Trusts to avoid Family Provision Act claims.
Although the above can incur more upfront costs the income tax, duty and other savings over time are significantly more than the initial upfront costs.
By far the largest complaint both MGS and MGS Private hear from new HWI clients is that I thought the accountant/bookkeeper knew all that was required to effectively deal with my affairs.
To inquire about a High Wealth Individual review do not hesitate to contact MGS Private.
Although we recommend a holistic review of all assets, structures and advice we also offer the following:
- Review of business structures for tax efficiency and asset protection,
- Review of Division 7A loan and UPE potential problems,
- Review of investment/business property holding structures and debt/equity considerations,
- Review of personal asset structures and asset protection,
- Review of succession plans and implementation of same.
MGS Private also take instructions in respect of ATO reviews, audits and investigations and State Revenue reviews, audits and investigations.
Where appropriate we brief Counsel from the New South Wales Revenue Bar.
