If you’ve built up a robust and profitable business, you’ll want to continue to grow and thrive for the benefit of your family, now and into the future.
Continuity is key, so it’s vital to consider what would happen if:
- You lose capacity to run the business or become seriously ill
- Your business partner loses capacity, becomes seriously ill or dies
- A major shareholder or company Director dies without a Will (intestate)
Contact Panthera Estate Planning today and start protecting your business.
Planning for the future
It’s not something most business owners care to think about, but the consequences of your death or loss of capacity could be dire. If, for example you die without putting in place business succession and/or making a Will:
- 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 (whether yours or someone else’s).
- Your 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 and the proceeds become liable to Inheritance Tax.
Putting family first
It’s also worth remembering that your spouse may not want to be burdened with the running of a business they know precious little about. Equally, would you have sufficient funds to buy any deceased director’s share from his family if required? If you can’t, and the business had to be sold, you risk losing up to 40% of the cash proceeds to the taxman.
Business Lasting Power of Attorney
Just as you can set up an LPA for yourself, you can also set one up for your business. Business owners should have a separate LPA, as they are likely to have different instructions for their business and their personal assets.
In the case of your incapacity, and without a business LPA in place:
- Your bank could freeze your business account, especially if there is an overdraft
- Paying wages, bills and taxes becomes difficult
- Contracts may become unenforceable
- Investors may withdraw their financial support
- The value of your business shares may fall
At Panthera Estate Planning, we can guide you through making a business LPA - contact us for details.
Business Estate Planning from Panthera
Putting in place business planning can both protect your business and reduce the impact of Inheritance Tax. We can help you protect your business for your bloodline and against future losses through Family and Business Trusts and provisions in your Will. We will also advise on suitable Life Cover and associated Shareholder’s Trusts.
Please note that Panthera Estate Planning does not provide regulated financial advice. We can work with your existing adviser or through Panthera Wealth. We will also work with your accountant for specialist tax advice.
Want more information?
Read our business succession planning guides below or call us today to discuss your company situation or business portfolio that need protecting.