Failure to have the appropriate Business Succession strategies in place before you die could mean;
- Your spouse/partner and children may not inherit your share of a business
- The business may have to be sold, with any proceeds liable to Inheritance Tax
- Business partners may not be able to buy out the deceased’s share
- An inexperienced beneficiary could end up making decisions that ultimately have a negative effect on the value of the business
Through your hard work, diligence and dedication, you have built a strong, well-performing business to benefit you and your family. It’s only natural then, that you would want to protect this for your loved ones when you pass away.
It is really important that you, therefore, consider the consequences of failing to put the right protection in place to ensure your beneficiaries are protected in the event of your death, or for that matter, the death of your business partner(s).
Without a valid Will, the deceased’s share would be subject to the Laws of Intestacy. Effectively, this means that in the absence of a Will, the State will make one for you. They will decide who the beneficiaries are and what share of your business they will each receive. This is likely to mean that the person who inherits may not be the person you intended.
This, in turn, can create added complications. For example, 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.
Redwood Financial is one of the souths leading Wills, Trusts & Estate Planning providers and we are dedicated to helping families to grow, protect and enjoy their wealth. With our unrivalled knowledge of financial wealth planning, we can advise on any situation. Join us at one of our Free Public Information Seminars: Book online Book Me A Place!, Call us on 01489877 547 or Email firstname.lastname@example.org to book a FREE Initial Meeting with us to review your financial planning needs.