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“Our business estate planning is tailor made to suit you and your business”


Without the appropriate essential Business Succession strategies and protection, you are leaving your business and your family exposed not only to the taxman but also to potential financial disaster.

With hard work  you  have  built  up  a  sound  business  to  benefit  you  and  your  family  and   naturally you want to ensure that your loved ones are provided for in the event of your death.
So what if the worst happens and you, or a business partner were to die?

Without a valid Business Will, the deceased’s business (or share of it) will be subject to Intestacy rules and  who  inherits  your business assets may  not  be  the  person you intended.

This could have a major impact on the running of the business or its value may decrease following the death of such a key person.

Our business estate planning is tailor made to suit you and your business.  We take the standard   planning options a significant step further.  Our  planning  provides  significant  protection  to  the  business  and  dramatically reduce the  possible  impact  of  Inheritance Tax. (where applicable)   Furthermore the business and proceeds from any future sale  of  the  business  are  protected  for  the  bloodline from  IHT,  remarriage, creditor claims, Nursing Care Fees.  Our  Planning  leaves  each  partner  or  director’s  share  of  their  business  to  individual  Family  Trusts  through  appropriate  Clauses written into their Wills.  Furthermore  the  appropriate  Life  Cover  will  also  be  assigned  to  ‘Shareholder  Trusts’  so  that  these  proceeds  do  not  impact  on  the  surviving individual estates. How is this achieved? With the use of Cross Option Planning.

Cross Option Planning

Cross option agreements (also known as the double option or put and call agreement.) as the preferred vehicle for Shareholder Protection Insurance, the cross option agreement provides the surviving   shareholders with the option to buy the deceased business owners share of the business.

In addition to the surviving shareholders being able to call their option to buy the shares, the legal representatives of the deceased’s estate also have the option to sell the shares of the deceased business owner to the remaining shareholders.

In either case, whether the remaining business owners want to buy the shares or the legal representatives want to sell, the agreement ensures the option is exercised.

The cross option agreement is set up in this manner to ensure there is no binding sale, i.e. in certain circumstance neither party could exercise their option which means business property relief for    inheritance tax purposes can be preserved.

In the process of setting up the appropriate business protection it should also involve setting up a cross option agreement with all the directors / partners in the business, enabling the remaining directors or partners to purchase the share of the business from the deceased’s estate.

This agreement in turn provides the dependents with a willing buyer and with cash, instead of shares or an interest in the business ensuring the right people remain in control of the business.
Once the Cross Option has been executed, the proceeds from any Life Assurance policy replace the share held in the deceased’s Family Trust(s) and so do not form part of the beneficiary’s estate.

These funds are now protected against any of the risks detailed above and the surviving spouse & beneficiaries still  have  full  access  to  the  Trust assets.

The surviving business partner still retains their original share of the business but the deceased’s  partner’s share is passed directly into a Shareholder Trust(s) from where the Life assurance proceeds were originally paid. The surviving Director still has the fullest of control on the business as he is a Trustee of the Shareholder Trust(s).

For further information on how we can help you, contact us now so we can organise a free no obligation initial consultation.

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