As a Director of a Limited Company you may hold a significant shareholding within the company, which on your death would pass via your Estate to members of your family.
Your family may not wish to participate in the business, they may prefer to have the capital value of the shares.
Your Co-Directors may not be happy with the prospect of working with your family in the future, particularly if they have no knowledge of the business.
It is therefore important to organise Share Protection Schemes, which will provide a lump sum on your death, which the other Shareholders can use to purchase the shares from your beneficiaries (usually your family).
Agreements need to be in place to show what circumstances would facilitate a sale, or whether indeed a sale can be forced, or must be arranged voluntarily.
These agreements though are very important and need to be set up as part of the Share Protection process, along with a properly drafted Life Assurance Plan, which is reviewed on a regular basis in line with the value of the business.
Trust documentation may also be required. This an extremely complicated area and we do suggest that you
contact us
for a more in-depth discussion if this is an area which interests you.
