Call us on 01228 711881 Menu

Keeping control of your business

If a business doesn’t have a suitable protection plan and a business Will in place, losing a major shareholder or partner can cause serious problems.

For instance, a shareholder’s family could end up with a share of the business which they don’t want or, in the case of the surviving shareholders, there is a risk that these shares could be sold on the open market to a competitor.  In the case of a partnership, the partnership will automatically dissolve unless an agreement exists to the contrary.

Taking out life insurance, in conjunction with a suitable business Will or share purchase agreement, could help make sure that control stays with the remaining shareholders or partners.  In addition, it would result in a cash lump sum being available whenever death occurs.  This, in turn, could mean the remaining business partners would be able to buy the deceased’s share of the business if that was decided.

Business owners can take out cover on their own life or on the life of another and can choose the level of life cover and plan term that is most suitable.  Critical illness cover can also be included and if appropriate, this can be incorporated in the shareholder agreement.  These plans, via a suitable trust, would ensure that funds are passed to the correct people and do not fall back into the individual’s estate.

Here at David Allen Financial Services we will complete a comprehensive review of your company’s existing and future financial planning needs, arranging bespoke solutions where appropriate.

Contact us to arrange a no-obligation FREE discussion over the phone or to arrange a meeting.