BLM's head of private wealth James Beresford says during the lifecycle of a business from establishment to growth, succession planning is often overlooked by business owners. This is despite the obvious risk to both the business and to the families involved in the business.
In an article for North West Business Insider, James discusses a recent case where he acted for a family business owner who was the sole shareholder of the business and his shareholding was worth £10 million. He had five children from five different relationships that ranged in age from six to 32. He did not have a will or Lasting Powers of Attorney (‘LPAs’) in place. If he had died his estate would pass by the laws of intestacy (including the shares in the business) and this would mean that his children would inherit his estate in equal shares (including the minor children). However, this would have dire consequences for the business given that the three adult children were not involved in the day-to-day running of the business.
James highlights that one of the most overlooked aspects of succession planning is the use of LPAs and provides helpful points to consider such as preparing wills that appoint appropriate trustees and if necessary incorporate trusts, Lifetime Trusts, LPAs and cross option agreements.
Click here to read James' article in full.