Planning ahead as a business owner is absolutely essential for clients in order to ensure the enterprise they have developed and grown over the years becomes the legacy they wish it to be. Whilst business owners make lots of plans regarding the direction of the business during their life, they may not have considered the consequences of not planning for the future in the event of their death;
1) Does the client have an existing Will which specifies what should happen to not only their personal assets but also their business assets and if the answer is yes, how recently was it last reviewed?
2) What happens if your client becomes unable to manage their personal and business affairs as a result of accident or illness?
3) Has your client considered inheritance tax liabilities?
4) What is the structure of the business (i.e. sole trader/partnership/ltd) and who will receive their share of the business when they die?
5) Is the business to continue after their death?
Why does all of this matter? If we take one example that by leaving business and/or agricultural assets which may be subject to 100% relief to a non-tax paying beneficiary such as a surviving spouse (who does not pay tax because of the inter-spouse exemption on IHT) the benefit of this relief is wasted and the inheritance can also form part of the surviving spouse's estate on their death.
Business interests balanced with personal interests can be a fine balance to strike and we have a number of solutions that you can put forward to your clients dependent on their individual situations and the needs they are seeking to address such as;
- Business Lasting Power of Attorney
- Business Legacy
- Business Trust
- Partnership Agreements
- Share Option Agreements
Want to know more? Email firstname.lastname@example.org and we'll be happy to provider more information
Are you a professional adviser looking to offer Estate Planning solutions to your clients? We offer full training on all aspects and our next available date is:
Wednesday 25 March - The Bentley Hotel Lincoln
Contact us to book your place today.