As set
out in earlier posts, and with thanks to the Television Education Network,
today’s post addresses the issue of ‘What are the broad alternatives for
professionals not wanting to use service trusts?’. If you would like a link to the video please let me know.
As usual, a transcript of the
presentation for those that cannot (or choose not) to view the presentation is
below –
There's the ability to completely
restructure the existing arrangements and move into a new structure and if that
alternative was to be taken, there are then a series of different arrangements
that might be entered into, and that can include a new structure in total, or some
sort of hybrid arrangement.
The types of structures that are
available are only really limited by your imagination in terms of what may or
may not be useful.
Obviously, there are also a
number of commercial issues that need to be taken into account. Many of
those will be driven by the actual underlying nature of the partnership that’s
involved, but generally there are two alternatives if you're moving out of an
individual structure, and that can be to incorporate or to form some sort of
trust arrangement.
Within those two parameters or
those two goalposts, there's quite a large playing field in terms of what that
might look like. So in some instances, there's a hybrid between both
companies and trusts. In other instances, there are trusts which are of a
hybrid nature. So in other words, a unit trust or some sort of
partnership of trusts or a blended discretionary trust. Again the common
theme is that it’s largely driven by what's going to be most useful for the
underlying partners involved.
Until next week.
