Insurance Trusts
Made Easy
Setting up a shareholder insurance trust is simple
If you have key people as shareholders working in your business, setting up an insurance trust will help protect your livelihood in the event of a claim payment.
Before ordering, think about the value you would place on your business if you were to buy the company today. Have a solid conversation with your Insurance Adviser (and Accountant) to ensure this solution is right for your business before proceeding.
Costs & Benefits
Historically setting up buy-sell agreements and trusts for shareholders have been out of reach for most businesses, with legal costs in some cases in excess of over $10,000. Our Shareholder Insurance Trusts are a practical, cost-effective and reliable alternative, with pricing at $1,500 incl GST reflecting our mission to bring technology and experts together to protect your business.
Having funding through key person insurance in the event of death or permanent disablement, and perhaps when suffering a specific trauma event, is a vital first step. Having solid documents to clearly spell out how those funds will be used and who will oversee the buy-sell process (most likely your Accountant) is where the certainty and security comes in. Insurance Trusts enable you, your business and your accountant to complete that essential second step.
Benefits of Insurance Trusts
- RIGHT TIME - Right timing for tax and business planning.
- RIGHT AMOUNT - A cost effective alternative to shareholder loans or capital raising.
- RIGHT HANDS - Both certainty of funding and confidence that funds will be used in the right way.
- RIGHT THINKING - The right thinking in terms of potential deadlock and providing an independent view.
- RIGHT PROTECTION - Protection against family claims from exiting shareholders.
Quality Documents
Developed by Leading Experts
The shareholder insurance trust documents have been prepared by one of New Zealands leading Trust experts Chris Kelly (BA LLM DipMgmt TEP, Barrister and Solicitor). Chris has over 30 years experience specialising in Wills, Trusts and Estates.
Chris previously worked for many years as a lawyer at Public Trust, and was also General Counsel at The New Zealand Guardian Trust Company. In addition, Chris is co-author of two leading legal texts: Garrow & Kelly Law of Trusts and Trustees (6th edition) and Dobbie's Probate Administration Practice (5th edition).
Chris attended Victoria University in the 1970s graduating with a Bachelor of Laws. He later completed study for a Diploma of Management from the New Zealand Institute of Management. In 2009 Chris completed a Master of Laws with a thesis on Trustee Accountability. He is a member of the New Zealand Law Society, the Property Law Section and the UK based Society of Trust and Estate Practitioners (STEP).
Simple to Understand
Written in Plain English
All the trust documents have been written in Plain English so they are easy to understand, yet very robust.
Steps to Take
1. Complete the order form with your Insurance Adviser and Accountant and submit it to InsureUs.
2. Within 5 working days receive documentation from InsureUs.
3. Liaise with your Accountant as they will complete the checklist for:
a) Signing and witnessing documents.
b) Applying for a Trust IRD Number via the IR596 Form (with a copy of the Trust Deed.
c) Setting up a trust bank account (with $150 and a copy of the trust deed).
