“What happens to my business once I’m gone, or no longer able to deal with the day-to-day running?”
Everyone wants to ensure that their loved ones are provided for.
If you own a business, or have a share in one, then you NEED to make important decisions about what will happen to your business once you pass away, retire or in the situation you are no longer able to deal with the day-to-day running of your business. Without a robust business succession plan, your company could suffer and shares could be subject to the Laws of Intestacy.
Or, similarly, if you were no longer able to deal with the day-to-day running of your business (for instance, you have an accident, or you become mentally or physically incapable of doing so), what would happen to your business? Would your family suffer if you were no longer able to provide income from your business?
A business Power of Attorney is a powerful legal document, which is simple to implement and stipulates who, when and how somebody you trust would look after your business, with yours and your family’s best interests at heart.
Likewise, would you or your business partner be content to run your business with a surviving spouse or even their children?
Without a succession plan in place they would be the most likely to inherit! Many spouses would probably not want the burdened with the running of a business and any children may be too young to take this on.
The death of a significant person within the company could majorly impact the running of the business and the value could depreciate owing to the inexperience of a beneficiary.
Could you afford to buy the deceased’s Directors share of the business from his family, or would the business have to be sold? The increase in assets could be impacted by Inheritance tax as any Business relief available whilst the company was trading would be lost, risking 40% of the cash proceeds to the Tax man!