If you own a business, you should have an effective succession plan in place, whether this is through a will, trusts or both. Traditionally, family owned businesses can be passed down through successive generations but it is crucially important that your property and business assets are divided up properly, according to your wishes, so that you can preserve them for the next generation.
Despite the potentially difficult discussions, it is important to get succession right so it is fair for everyone – not just because of business issues such as tax efficiency.
It’s also important to ensure the plans will remove potential family tension and enable the older generation to enjoy their retirement.
We are fortunate to have advised some family business clients for many years through a number of changes.
We can advise you on capital gains tax, inheritance tax and the appropriate reliefs that may apply. The value of property and land has been rising for many years and inheritance tax is highly likely to affect your estate when you die. Whilst relief may be available, you need expert advice to understand how it applies in practice.
We can draw up an effective will and, where necessary, create a suitable trust. Even where you have succession plans in place, you should regularly review your affairs.
We can also help you effectively structure your business to take full advantage of tax reliefs and allowances available at any given time.
Sadly there are circumstances where disputes over inheritance can happen, either due to insufficient planning or unhappy family circumstances. We can also assist you in resolving these disputes and ensuring inheritance is correctly distributed in line with the regulations and legislation which exists to protect you.