Good Businesses need good Estate Planning
Even before the Covid Pandemic (let’s get that out of the way in the first sentence!) the need for good estate planning was evident to ensure that businesses were protected in the event of the unforeseen happening.
So, what is good estate planning?
Well, on a personal basis, it means organising your affairs in such a way as to leave the best possible situation for your family. That might be whilst you are still alive or after you have passed on.
But it also applies to businesses.
Three of generally more recognised aspects of estate planning are:
• Wills
• Powers of Attorney
• Trusts
Most of us accept why making a Will is a good idea. But if the person owns their own business, it becomes even more essential.
What happens to their shares if they die? Is the company going to have a shareholder or director that they didn’t anticipate working with i.e., the partner of a deceased shareholder? How do you make sure that the surviving partner can still get the benefit of Business Property Relief, even after the company has bought back the shares?
A will can deal with the issues which can arise.
A Will is all well and good if a shareholder/director dies. But it’s amazing how few companies put the necessary arrangements in place if they are just incapacitated i.e., arranging a Power of Attorney. Equally, if not sometimes, more, important than a Will, a Power of Attorney can ensure that a business is not crippled if a director is incapacitated. What would happen to your clients’ business if that was to occur?
And last but not least, Trusts can help smooth out tricky family situations. For instance, the client might not want a child to inherit your business for a number of reasons. However, in Scotland for example the laws of succession make it difficult to disinherit, Trusts can come into their own in these situations.
Providing the appropriate solutions need not be complicated. We have experienced consultants who can work with you to get an in-depth view of your clients’ needs and provide you/your client with the appropriate solutions.
If you have any complex cases you would like to discuss or you would like to learn more about our partnership referral schemes, please contact Mark McGoran, our Business Development Director on 07525 146307.
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