Succession planning for business owners

The costs for our wills service depends on what level your individual circumstances require. We can cover all types of will from the simplest to the most complex

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Call us: 0161 475 7676

What we offer
Ensure the future of your business
What is succession planning for business owners?

Setting up a new business is an exciting venture with the prospect of making money and providing for your family, but what happens to that business when you die?

Presumptions are often made that another family member will continue running it or the business will simply wind up, but the options are not often discussed and as a result the estate and inheritance tax planning opportunities are lost.

Also, will your business be subject to inheritance tax when you pass it on? If your business satisfies the relevant criteria, it could benefit from Business Property Relief (BPR) which is a relief from inheritance tax.

BPR applies to qualifying businesses which have been owned by the deceased for a minimum of two years before death. Interests or assets in an investment business will not receive the relief; neither will money held in a business but not required for the running of the business.

It can sometimes be unclear whether the relief will apply as some business activities can be investment and some are trading. However, by taking specialist advice you can plan for the future of your business.

 

How can our wills and wealth planning solicitors help?

Our wills and wealth planning team have a range of knowledge and experience when it comes to succession planning for businesses and can advise you on:

  • Drafting a will which is bespoke to your needs and the needs of your business
  • How to incorporate succession planning into your will to ensure your children benefit from any business assets and not just your spouse
  • Ensuring BPR is ‘banked’ upon your death even if the business no longer continues after your death
  • Maximising BPR by identifying qualifying business assets

We can make sure that your business and its assets are taken care of when you die. This leaves you able to continue to run the business, knowing that this aspect of your life is covered in your will.

In conjunction with your will, you should also make sure that any corporate documents such as shareholders’ agreements and partnership agreements are in place and reviewed for succession planning purposes. We have a dedicated corporate team who can advise you on updating your documents.

What is succession planning for business owners?

Setting up a new business is an exciting venture with the prospect of making money and providing for your family, but what happens to that business when you die?

Presumptions are often made that another family member will continue running it or the business will simply wind up, but the options are not often discussed and as a result the estate and inheritance tax planning opportunities are lost.

Also, will your business be subject to inheritance tax when you pass it on? If your business satisfies the relevant criteria, it could benefit from Business Property Relief (BPR) which is a relief from inheritance tax.

BPR applies to qualifying businesses which have been owned by the deceased for a minimum of two years before death. Interests or assets in an investment business will not receive the relief; neither will money held in a business but not required for the running of the business.

It can sometimes be unclear whether the relief will apply as some business activities can be investment and some are trading. However, by taking specialist advice you can plan for the future of your business.

 

How can our wills and wealth planning solicitors help?

Our wills and wealth planning team have a range of knowledge and experience when it comes to succession planning for businesses and can advise you on:

  • Drafting a will which is bespoke to your needs and the needs of your business
  • How to incorporate succession planning into your will to ensure your children benefit from any business assets and not just your spouse
  • Ensuring BPR is ‘banked’ upon your death even if the business no longer continues after your death
  • Maximising BPR by identifying qualifying business assets

We can make sure that your business and its assets are taken care of when you die. This leaves you able to continue to run the business, knowing that this aspect of your life is covered in your will.

In conjunction with your will, you should also make sure that any corporate documents such as shareholders’ agreements and partnership agreements are in place and reviewed for succession planning purposes. We have a dedicated corporate team who can advise you on updating your documents.

Speak to a member of our wills team on 0161 475 7676 or get in touch via our contact form

Speak to a member of our wills team on 0161 475 7676 or get in touch via our contact form

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why work with us

Why choose SAS Daniels for wills and wealth planning support?

A team with your best interests at heart, dedicated to helping you plan for the future and protect your assets. Individual, personal service from one of our hugely experienced wills and wealth planning solicitors.

Speak to an expert

Please fill in the contact form and one of our team will be in touch as soon as we can. Our working hours are Monday to Friday, 9am to 5.30pm.

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