Brian and Jenny are a married couple in their 30’s. They contacted us through our website and requested a free consultation, but they wanted it to take place at work as they have business assets, and protecting it was of high importance to them.
The background…
This business has substantial assets in terms of machinery that is worth a lot of money, enough that when added to everything else (house, insurances and pensions) they would trigger Inheritance Tax. Something they were keen to avoid – so that they could pass as much of it down to the next generation as possible. Especially as it has taken two generations of hard work to build it up.
A further concern was what will happen if one (or both) of them go senile or get Alzheimer’s. Or if one of them was to suffer a head/brain injury like Michael Schumacher. Their immediate concern was who would run the business? More importantly, what would that mean to the staff and their families if that meant the business failed.
What we did…
To help them achieve their desired goals, and alleviate their concerns, we advised the following:
- Wills containing a Business Relief Trust (BRT)
- Lasting Powers of Attorney (LPA) – both personal and for business
The benefit of a BRT is that it removes the business assets out of the reach of the tax man so that it is no longer subject to Inheritance Tax. Within the wills they were able to specify who they would like their assets passed on to, and in what order.
The LPAs mean that they have appointed someone that they trust – to enforce their decisions when they are no longer able to. This covers health decisions, and decisions regarding property and finance. For the business that’s means they now have someone who can take charge, and is capable of making business decisions, should they be temporarily or permanently unable to.
If they are unlucky enough to lose mental capacity, then the business will be able to carry on and the staff and their families will have their livelihoods protected.
What can you do…
You can protect your business assets and also appoint someone you trust to make important business decisions on your behalf, and ensure your business has the power to carry on if you are no longer able to.
You can make sure that your business property falls outside of calculations for inheritance tax, meaning you can pass on as much as possible to your family or chosen beneficiaries.
To get started, simply complete the form below and we will be in touch to book your free consultation.