Victor Hugo once said that “Forty is the old age of youth; fifty is the youth of old age, however, once you reach the 50-year milestone there seems to be a whole list of things to do, family members to support, places to go, countries to visit, but for many of us work is still to be achieved.
Our 50s can be intense years, everything we may have worked for in life is coming to fruition, if you run your own business or are a partner or director in a business then how you manage and plan your future is just as important as what you have achieved in the past.
Many of us know we need a Will to make sure what we have worked hard for goes to our nearest and dearest, or those we choose as beneficiaries, but what about your business affairs? No matter what your interest is in a business – owner, director, partner or sole trader – you need a specific Business Will, or everything you have worked hard for could be at risk.
Why make a Business Will?
It may be that you’ve been in business for years but never considered a specific Business Will, or you may be considering passing the reigns over to the next generation, whatever your personal situation succession planning is vitally important for family businesses and organising finances ahead of any unperceived occurrences is a must.
Losing a family member can be a distressing time, sometimes the anguish of the bereavement may also be compounded with the additional pressure of how a family business is going to be distributed.
It is important to ensure that a business owner’s Will is consistent with the corporate documents that have been created and subsequently governed the running of the family business/company, and dovetails with any additional agreements made within the family business. These could take the form of a Shareholder’s Agreement or other legally binding family agreement.
It is therefore essential if you have any interest in a business to seek professional legal advice.
A bespoke Business Will is especially important for SMEs as their family may be reliant on the business as a source of income. With many small and medium-sized businesses, it is something to seriously think about and get sound advice.
Owning a business outright, having an interest, or shares, should have an impact on your Will and solicitor, Sarah Finnigan at Pearson Solicitors specialises in Tax, Trust & Business Wills. Sarah focuses specifically on this area of law and is an expert in her field.
“Most business clients don’t hesitate to take out insurance, but if they die or become incapable of running things it will affect their business. There is no age limit to retirement or how long people choose to work for themselves, but planning for any eventuality makes prudent business sense,” says Sarah.
“If a majority shareholder dies their shares may end up in the name of a spouse who has never been involved in the day to day running of any company, so how useful to have notes for loved ones who may ultimately be tasked with selling on stock, fixtures and fittings and any property a sole trader owned.”
Why it pays to get the right advice
“Invaluable inheritance tax savings are available to businesses and can be dealt with in a Will, hence the importance of engaging a solicitor to help. Your adviser needs to be familiar with the documents that create and govern companies and partnerships, and au fait with the correct tax efficient ways to deal with such assets within the business owner’s Will,” says Sarah.
How can we help?
For advice on Business Wills contact Sarah Finnigan on Call 0161 785 3500 or email sarah.finnigan@pearsonlegal.co.uk