Business Wills Succession Death

Published / Last Updated on 16/10/2016

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Would you really want your business to go this way? It may do if you have not made a 'business Will'. What would happen to your business if you or your co-business owner(s) died today?

PROTECT YOUR FAMILY

  • Your business gives an income for you and your loved ones.
  • It also has a monetary value.
  • If you died - your interest in the business passes to your family.
  • Do they know how to run your business?
  • Do they want to run your business?
  • Would they rather sell their share and invest the monies?
  • Have your co-business owners got the money to buy your share?

If you have answered no to any of these questions then you need a Business Will.

PROTECT YOUR BUSINESS

  • You work hard to build your business.
  • Your business provides you with an income to live.
  • Your business may be your nest egg for retirement.
  • What if your co-business owner died today?
  • Would you have the money to buy out the new owners (e.g. the family of your business associate)?
  • Would they sell it to you?
  • Would they sell it to your competitor?
  • Would they want to work in the business?
  • Would you want to work with them?
  • Would your business survive?

Whether your business is a Partnership or a Limited company there are simple solutions.

PARTNERSHIP Agreement

The solution is Partnership Protection with a succession agreement. This is an agreement between you and your partner(s). It gives the surviving partner(s) the right to buy the share of the deceased partner. In order to provide the money, a life cover policy is taken out on each of the partners. This cover is basic life assurance and is highly cost effective. You can have the peace of mind that your family will be able to sell your share of the partnership to your co-business owner at the price agreed between you. Your family is then financially provided for. Likewise, the surviving partner(s) have the security of knowing that you have the right to buy your deceased partners share - his/her family cannot refuse to sell it to you.

LIMITED COMPANY  - Directors Share Agreement

The solution is Shareholder Protection with a succession agreement. This is an agreement between all of the shareholders. This agreement puts plans in place so that if one of the shareholders died, the other shareholders would have enough money to buy out the deceased shareholder's share of the business. In order to provide the money, a life cover policy is taken out on the lives of each of the shareholders. The cover is basic life assurance and is highly cost effective. You can have the peace of mind that your family will be able to sell your share of the business to the other shareholders at the price agreed between you. Your family is then financially provided for. Likewise, you the surviving shareholder(s) have the security of knowing that you have the right to buy the deceased shareholders share - his/her family cannot refuse to sell it to you. Care must be taken when choosing the wording of the agreement - as any business property relief may be lost rendering the shares liable to Inheritance Tax (visit out site the Inheritance Adviser.com).

Do not wait - get some business protection advice right now, you have nothing to lose. Contact us today.


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