Business Succession Planning

If a director/shareholder or partner in a business dies, their beneficiaries will inherit the shares and will own part of and possibly even gain a controlling influence over the remaining business. They are unlikely to have the skills and knowledge to contribute to its continued operation.

It is often in the interest of all parties to put in place an agreement that allows the surviving partners or shareholders of a company to ‘buy out’ the interest of the deceased partner or shareholder. A cross option agreement backed by an appropriate term assurance policy can provide the deceased’s estate with a lump sum and return the shares to the business.

Setting up these arrangements can be potentially both tax efficient and save enormous stress and disruption to the business and the beneficiaries.

Please do not hesitate to contact us if you would like to discuss any of the above in more detail. Remember, we offer a free no obligation consultation and will be happy to help if we can. We take a holistic and long-term approach to wealth management, opting to build a lasting relationship with you and provide a tailored solution for all of your business.

The plan will have no cash in value at any time and will cease at the end of the term. If premiums are not maintained then cover will lapse.

*The policy may not cover all the definitions of a critical illness. For definitions, please refer to the key features and policy document.


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