There are lots of good reasons for making a Will, it means that your family know your wishes, you can appoint the people you want to wind up your estate (Executors and Trustees), you can appoint Guardians to look after your children if you are not around anymore and you can ensure your beneficiaries inherit your estate and at an age when is right for them and their circumstances.
For a business owner though, a simple Will is not enough. The reason being:
So many business people don’t write a Will. Whether it’s the thought of writing one brings their own mortality into focus, or they just never find the time, if they were to die suddenly, the effects can be catastrophic for those left behind. Clever business owners understand that by setting up a trust in their Will, their business will carry on running when they are no longer around.
By talking through the options with one of our Consultants, TLB Planning will ensure that your business doesn’t come to a screeching halt when you’re gone.
In certain circumstances, Inheritance Tax may be avoided if you leave your business assets or shareholding, to your spouse or Civil Partner. However, if your beneficiaries then wish to sell these assets, the proceeds will become taxable, meaning they could pay 40% of their inheritance to HMRC. TLB Planning can guide you through different options and make sure that what you want to happen when you pass away, will happen.
By leaving your business/agricultural assets in your Will in trust, your spouse / children can benefit from those assets during their lifetime and are not subject to Inheritance Tax on the survivor’s eventual death.