Juanita DoolanBusiness Assurance

May 2015

Graduated - 1995

London - 1999

Investec - 2005

Certified Financial Planner - 2009

Liberty Life - 2010

Memberships and Associations

Memberships and Associations

The Family

What is Business

Assurance?

Business Partners

PlayTime Educational Toys

Fred – What we know

• 32 years old• Nice guy – will sell the shirt of

his back for a friend• CA• Analytical• Sensible• He is married to Anna, ANC• He has a son, Danny (aged 2),

out of a previous relationship

Sandy – What we know

• 45 years old• Volunteers at a shelter for

homeless children and pensioners on weekends

• She is a qualified teacher but her passion is developing educational toys

• She is married in community of property to Peet

• She has two daughters, Kiera (age 28) and Lily (age 9)

• She is driven and passionate

Fred – What he doesn’t tell anyone

• When Fred met Anna she was charming, beautiful and his mates thought he had hit the jackpot.

• Anna has a mean streak though and Fred is scared of her

• She is a gold digger and knows that Fred is her meal ticket

• Fred is having an affair with his personal assistant, Betsy

• Fred has been meaning to do a will

What else?

Sandy – What she doesn’t tell anyone

• She fell pregnant at age 17 sleeping with the drummer, Peet, of the no-name supporting band at a rock concert

• Her parents insisted that she get an education regardless of the pregnancy but they are old fashioned and insisted that she marry Peet in exchange for them paying for her education

• Peet is a great father and a stay at home husband who would still be living with his parents if he hadn’t married Sandy.

• Sandy has a will leaving 100% of her estate to her children in equal shares to be held in a trust if they are minors

What else?

What could possibly go wrong?

What would happen if this happened to Fred?

If Fred died

• He died intestate which means the following:• Anna and Danny will get equal shares of his estate – this means Sandy

will now have a minor boy’s guardian and Anna (gold digger) as business partners.

• Anna is also bitter towards the company and everyone that works there because she knew about the affair

• Over time the relationships between Sandy, Anna and Danny’s mother sour so much that she starts a new company that is a direct competitor to PlayTime. As she is the only one that knows the business and she is no longer vested in PlayTime the shares in the company become worthless.

• So the legacy that Fred thought he was building for Danny is worthless.

What would happen if this happened to Sandy?

If Sandy died

• Sandy has a will leaving everything to her kids but she is married in community of property. What does this mean?

• Because of how they are married Peet automatically owns 50% of everything Sandy owned. Since he owns nothing himself and has no way of looking after himself the 50% that he now owns in PlayTime is all he has even though he knows nothing about business or money.

• The eldest daughter is not interested in the business. She has her own life.

• Fred now has a business partner who knows nothing about the business but wants be involved an make decisions because this is all he has.

• The relationship be Fred and Peet sour quickly. Fred is offered a job with one of PlayTime’s biggest competitors. He is fed up with Peets interference and takes the job. The PlayTime shares become worthless leaving Peet and the youngest daughter destitute.

What can we do to avoid this?

Partnership Agreement

Life cover and Disability Insurance

Peet also needs to sign an agreement that he agrees to sell his 50% to Fred should Sandy die

Who do I want to speak to?

• Business Owners of existing businesses• People starting new businesses• Entrepreneurs • Shareholders in small and medium sized businesses• Investors in small businesses

What to listen for?

• My business partner…• I am giving a important staff member 10% of the business

as an incentive/BEE• My business is growing so fast…

Thank you