It is likely that your business is one of the most valuable assets, so it’s important that you have plans to leave your shares or business in safe hands following your death.Start Now
If you own a business, it is most likely one of the most valuable assets that you have in your estate, in addition to your home, money and other treasured possessions.
If you are a shareholder, your share of the business is also part of your estate in the event of your death.
Getting a will and putting a plan in place to protect the future of your business is the best way to make sure your company is passed on to a person who you trust when you pass away. Without one, there are always the risks of damaging your business if the incorrect person takes over and losing any shares you may have invested in.
Whether your business is small or large, it is crucial that you carefully consider the right beneficiaries to have peace of mind that your business will be in safe hands and will maintain its reputation and quality in years to come.
Put simply, business succession planning is the process of deciding and developing new managers or leaders who will take over from the owner when they leave, retire, become too ill or injured to work, or pass away. It involves making sure that the business will continue to succeed without the owner, both logistically and financially.
Without putting plans like these in place, the future of your business is not guaranteed and may result in your family and loves ones suffering financially as a result.
Some things you should consider are:
If you have a family business, it probably means a lot to you and your loved ones – as well as providing an income, it can hold real sentimental value, which is why family business succession planning is also so important. This involves deciding who gets certain percentages of your share and declaring it all in a will, which helps to avoid any potential future disputes between your family and existing partners.
The best way to make sure that your business continues to flourish when you’re no longer here is to write all of your plans and wishes in a basic will as soon as possible.
At Wills Services, our specialists are on hand to help should you need any advice on will writing and how to ensure your business is fully protected.
When you pass away, your loved ones must pay inheritance tax to the government if your estate totals more than £325,000 (the Nil Rate Band threshold). Your estate includes everything you own, such as your home, money, possessions, and any businesses.
Your loved ones will be responsible for paying 40% tax on the difference between the Nil Rate Band and the value of your estate. For example, if your estate is worth a total of £500,000 when you pass away, your family will have to pay tax on £175,000, which is a staggering £70,000.
In some circumstances, loved ones may be better off selling the business due to it losing a significant amount of value after inheritance tax – you will need to work out the total of your estate to be able to make the best decision for you and your family.
The executor of your estate may also be able to claim business relief on properties, which we can explain to you in more detail.
At Wills Services, we have a dedicated, experienced team available to answer any of your questions regarding writing a basic will and protecting your assets.
For more information on protecting your business with a will, contact us today, obligation-free, and see how we can help you get peace of mind as soon as possible.