Tool 11 of 14

The FREEDOM check

Control passes when the family is ready, not before.

The scenario

Meet the Hartleys (fictional)

Margaret was widowed eight months ago. The family business was sold in 2024, leaving about $82m across eight structures: five companies, a family trust, a unit trust and a super fund. Her private bank wants the portfolio reinvested within 60 days, and she does not know who now holds the family trust’s appointor role.

  • MargaretAge 58

    Widowed eight months ago (Richard). Sole director of all five companies.

  • JamesAge 31

    Commercial lawyer, married to Priya, one child.

  • SophieAge 27

    Ceramic artist, irregular income.

  • TomAge 19

    Engineering student.

  • Family Trust discretionary
  • Investment Trust $38m
  • Property company $14m
  • Distributions company $6m
  • Super Fund (SMSF) $7m
  • Held personally $17m
  • About $82m · eight structures

The FREEDOM check

What it is

What it is

A readiness check before a founder hands over a family business. Seven areas are rated green, amber or red, with evidence and actions: Financial security, Refocus of life plan, Electing a successor, Education and support, Disasters and unplanned events, Objectives alignment and Managing communication. Control does not pass while any area is red. (Framework: Grant Thornton Australia.)

What the family gets
  • A rated view of readiness across seven areas
  • The evidence behind each rating
  • The actions needed before control passes
  • Financial security and contingency plans confirmed first
Step by step

How it works

  1. Assess

    Seven areas, each with one key question.

  2. Evidence

    Models, plans, agreements and meetings.

  3. Rate

    Green, amber or red.

  4. Act

    Nothing passes while any area is red.

Illustrative sample

A worked example, using the Hartley family

How the Hartleys would have scored in 2023

Illustrative sample
  • Financial securityGREEN
  • Electing a successorAMBER
  • Disasters and unplanned eventsRED
  • Managing communicationAMBER
  • Refocus of life planRED
  • Education and supportRED
  • Objectives alignmentAMBER

Looking back, the red areas show why selling in 2024 suited the family better than a handover.

The Hartley family is fictional and all figures are illustrative. This material is general information only and is not personal financial, tax or legal advice.

Where it’s used

See it

WEALTH PICTURE

Not used at this stage.

Solve it

BUSINESS AND SUCCESSION

Before any founder hands over control.

Run it

PRIVATE OFFICE

Re-run each year while a handover is under way.