How can I preserve my Business assets for my family?
Without the appropriate Business Succession strategies:
- Your spouse / partner and children may not inherit your share of a business.
- Business partners may not be able to buy out the deceased's share.
- The surviving spouse or children may be obliged to take over the running of the business.
- The value of the business could depreciate owing to the inexperience of any beneficiary.
- The business may have to be sold an
Protecting the family busines
Hard work and dedication has meant that you have built up a sound business to benefit you and your family and naturally you would want to ensure that your loved ones are provided for in the event of your death. So what if the worst should happen and either you, or a business partner were to die?
Who would actually be entitled to this share of the business?
Without a valid Will the deceased’s share would be subject to the Laws of Intestacy and the person who
inherits may not be the person you intended.
Would you or your business partner be content to run your business with their surviving spouse or their
beneficiaries?
This could have a major impact on the running of the business or the value of the business may now go down following the death of such a key person.
Would they even want to be involved with the running of the business?
Many spouses would probably not want to be burdened with the running of a business they may know very little about. For instance, if there are young children to care and provide for then the surviving spouse might prefer to be bought out.
Would you have sufficient funds to purchase the deceased Director’s share from his family?
Or would the business have to be sold?
If the business is sold by the deceased’s beneficiaries, how would this impact on their estate as their assets
increase? How would it also affect the surviving business partner’s assets as these too increase? Both parties' estates could be impacted by Inheritance Tax in the future, having now lost any Business Property Relief previously available whilst the company was still trading. With the sale of the business you risk losing 40% of the cash proceeds to the tax man.