If you own your own business, you may have thought about protecting your business and your personal wealth, but how about combining the two? As a business-owner, protection of family wealth means paying attention to business assets.
It won’t come as a surprise to hear that we think everyone should have a Will in place. If you own your own business, however, we really think it’s crucial.
We can advise you on the intricacies of drawing up the most effective Will taking into account business assets. For example, any assets qualifying for business property relief shouldn’t be left directly to your spouse in your Will (if the business is sold after soon after your death, BPR will be lost as the business is turned into cash).
Of course, your family may not choose to sell the business, choosing instead to pass it on to further generations of the family. In this case, we might advise that a trust is set up to help with succession planning. Trusts can be particularly helpful if children are not old enough or responsible enough yet to have a controlling interest in the company.
What if your children work for you in the business? This is a common scenario, further complicated if there are other children who do not work in the family business. It is not always possible to leave the business to some of the children and leave other assets to the others, particularly if the business assets represent the bulk of the family’s wealth. Of course, you’ll want to treat your children equally. We can advise on the best solution: for example, introducing a legal mechanism to ensure that all shareholders have equal right to dividends.
If your business represents a significant part of your family’s wealth, it makes sense to take the necessary legal steps now to ensure your family is provided for. We can help.
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