If you own a business either on your own or with business partners, you’ll no doubt be working hard to build it up so it benefits you and your family. Naturally you’ll also want to ensure that your loved ones are provided for in the event of your death. So what if the worst should happen and either you, or a business partner, were to die?
Have you made any plans for what would happen in these circumstances?
If you haven’t then the following could happen …
- your spouse / partner and children may not inherit your share of the business
- business partners may not be able to buy out the deceased’s share
- the 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.
Who would actually be entitled to this share of the business?
Without a valid Will the deceased’s share would be subject to the Laws of Intestacy and the person who inherits may not be the person you intended.
So you, or your business partner, may end up running the business with the surviving spouse or their beneficiaries? This could have a major impact on the running of the business and the value of it may go down following the death of such a key person.
Added to which many spouses would probably not want to be burdened with the running of a business they may know very little about. For instance, if there are young children to care and provide for then the surviving spouse might prefer to be bought out.
If the business is sold by the deceased’s beneficiaries, this might impact on their estate and the surviving business partner’s assets and both parties’ estates could be impacted by Inheritance Tax in the future.
So what can you do?
Fortunately, this doesn’t have to happen. If you make the right plans you can ensure that the future of your business is handled correctly to benefit those you intend.
At Barnet Wills, we are highly experienced at managing estate planning for individuals and for their businesses. If you have a will, did you ensure the future of your business is included in it?
If you would like to find out more, We would be happy to discuss this with you and help you plan the future of your business.
Call Barnet Wills on 0843 289 8468 or email firstname.lastname@example.org