In the event of a business owner dying or being diagnosed with a terminal illness, share protection can provide a lump sum to the remaining business owners. This means that a lump sum could be used to help purchase the deceased partners/shareholding directors/members interest in the business.
Share Protection allows the remaining partners, shareholding directors or members to remain in control of the business following the death of a business owner.
Why consider Share Protection?
If a business owner dies with no share protection in place his or her share in the business may be passed to their family. This means that the surviving business owners could lose control of a proportion or, in some circumstances, all of the business. The family may choose to become involved in the ongoing running of the business or could even sell their share to a competitor.
A share protection policy can help avoid these issues.
As well as retaining control for the surviving shareholders, if set up correctly it can also reduce any potential inheritance tax liabilities that could be created for the family of the deceased by retaining Business Property Relief.
If you would like to consider the possibilities of how your business can benefit from protecting itself against the loss of key people or shareholders please contact me on 0845 303 1144 or email firstname.lastname@example.org to discuss this further.
Please note, all our content is for general guideline only, every case is different and we would recommend speaking to us before taking any action as a result of the content. The content was correct at the time it was published.