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