Without the appropriate Business Succession strategies, your family may not inherit your share of a business.
Business partners may not be able to buy out the deceased's share. The value of the business could depreciate owing to the inexperience of any beneficiary. The business may have to be sold and the proceeds become liable to Inheritance Tax.
“As an owner of a family business, it is important I make sure my business can pass down tax efficiently to the next generation”.
Business Wills & Trusts
Hard work and dedication have meant that you have built up a sound business to benefit you and your family. Naturally, you would want to ensure that your loved ones inherit your business interests in the event of your death.
Shares in a private company are subject to IHT unless they qualify for Business Relief (BR). Careful Planning will ensure the relief won't be lost. Business shares can be placed into a Family Trust for the benefit of your spouse and children. It's also of paramount importance to have an up to date, professionally drawn, valid Will that includes your business wishes.
Without it, your shares would be subject to the Laws of Intestacy and the person who inherits may not be the right person, or the person you intended. This could have a major impact on the running of the business, or the value of the business may now go down. Protections and insurances such a Key Person Insurance may be available against such risks.
Business LPAs
If you run your own business and lose capacity, banks will freeze the business bank accounts very quickly. If no one can access the funds on the company accounts, consequences could be catastrophic and your business could fail.
Having a business Lasting Power of Attorney in place will remedy that and allows somebody you trust and who understands your business to take over operations as soon as required.
Protect your business and contact us to find out how.