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North Country Wills
North Wing,
Whitbarrow Lodge, Witherslack,
Grange-over-Sands,
Cumbria
LA11 6SJ

Tel: 015395 52038
Tel: 0800 043 4260

This firm is compliant with the IPW Code of Practice

WILLS FOR THOSE IN BUSINESS

Careful succession planning is essential and a Will is a crucial part of that planning process. Not being clear on what is expected to happen, immediately devalues your business, because if you die intestate solicitors, accountants and potentially even the Crown will have to be involved in what happens next, and they are expensive people.

So here are three things small business owners should do:

Give your executors the power to make the most of your asset. Normally executors are obliged to sell any business as soon as they reasonably can, to realise its value before distributing the proceeds. A well written Will can give the executors the power to continue to run the business or delay its sale.
Make the most of Business Property Relief. If a business has been owned for two or more years prior to death, the business can be subject to Inheritance Tax relief of up to 100% It is really important to make the most of this allowance.

If you have a going concern that is worth half a million pounds for example, and you leave it to your spouse who then sells it, the half million pounds proceeds will be counted as part of her taxable estate when she dies. A better plan may be to leave the business in trust, for the children. If the decision is then made to sell the business the proceeds can then be lent to the spouse. On the spouses death the £500,000 debt is then returned to the trust and then passed on to the children outside the spouse's estate thus potentially avoiding a £200,000 Inheritance Tax
Set someone up to run the business if you cannot. Assigning Power of Attorney to someone who can run your business should you be incapacitated, become ill or have an accident is relatively straightforward and can guarantee the continuation of your business in circumstances where it might otherwise cease to function.

There are numerous other examples of a professionally written Will providing protection to your business, to your family and beneficiaries, and to you as an individual, and each one of them suggests the same thing - delaying is not an option.

North Country Wills can give you the specialist advice you need.