A “Leading Member” concept is possibly the best available estate planning for business owners and high net worth individuals. This concept is modelled on the British Royal Family and its descendent bloodline.
The Leading Member is the key person in a family who is the primary business or financial decision maker. At the Leading Member’s discretion, they may also appoint second and third Leading Members, and any of these can be joint Leading Members.
In addition to asset protection, one of the most important things for an individual to do is to plan properly to pass their wealth, including their businesses, to their lineal descendants.
It ensures that through the control of various family structures and wealth by a succession of Leading Members that bloodline or lineage is protected and, in some cases, are the only parties to any distribution of income or benefits from these structures.
THE 4 KEY LEADING MEMBER STRUCTURES
1. Leading Member Discretionary Trust Company Trustee
2. Leading Member Discretionary Trust
3. Leading Member SMSF Company Trustee
4. Leading Member Self-Managed Super Fund (SMSF)