Business Successio
What happens to your business if you were to die?
Have you ever given thought to what would happen to your business if something should happen to you?
No one wants to think about their own mortality least of all me, but I do accept that I am faced with risks on a daily basis. This could be anything from driving to work, tripping over literally anything or dare I say it, my wife’ s cooking.
There is often a lot of confusion around what you need to do to ensure the continuity of your business but when it comes to it, it’ s really quite simple.
Firstly it depends on how you own / hold / run the business.
Here’ s a brief summary of practical considerations:
Sole Practitioner – A gift of the business can be made in the testators Will stating the beneficiary they wish to inherit. It might be prudent to appoint the beneficiary as the executor relating specifically to the business assets.
Partnership – It is wise to check any partnership agreement before making a gift in a Will. It may be that the agreement confirms that a surviving partner can purchase the deceased’ s share but there could be tax implications regarding business property relief. This should be checked with an estate planning professional.
Incorporated – In this instance the testator can leave their shares to anyone they wish in their Will subject to any conditions in the articles of associations.
If you would like your business to continue then obviously planning has to be done to ensure that the person / people that you
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The Society of Will Writers