Baker Watkin chartered accountants and chartered tax adviser

Baker Watkin

Middlesex House

Rutherford Close

Stevenage SG1 2EF

t: 01438 750555

e: enquiries@bakerwatkin.co.uk

Will you leave your family and business partners with a financial headache?

What happens to my business if I die?

Making a will is all too often avoided as clients tend to focus on the things to do now and put off everything else until later down the line. Is there any sense in working hard merely to leave your family and business partners with a problem.

I have dealt with several businesses where the owner has been killed in say a car crash, leaving his widow holding say 50% of the shares in the business and his business partner then has to pick up the reins with a shareholder who is unable to make any input into the business.

I think you need to ask yourself the following type of questions:

• On my death would the family go into the business or be paid out from my share?
• Who do I want to leave the business to?
• How will the business carry on without me?
• How can I protect my business partners?
• How can I protect my family?
• What do my family expect to receive?

This briefing is necessarily short on detail but I have in the past, along with solicitors, used ownership deeds and shareholder agreements to avoid a lot of these problems occurring. Much of this planning will involve solicitors rather than ourselves and we do have contact with firms of solicitors who can help you with these issues.

Most solicitors will tell you that they make more money out of cases which go wrong where these problems have not been addressed before death or permanent incapacity.

In my experience, where these arrangements have not been put in place the cost to sort out the problems can be huge. A typical Court action of this type will cost the loser at least the sum of £20,000 and I have heard costs to be more than £100,000.

The price of putting these arrangements in place is considerably less and if you would like me to introduce you to a solicitor who can help you in these areas then I will be pleased to do so.

Please contact Andrew Watkin on 01438 750555 or email awatkin.bakerwatkin.co.uk.

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The information contained in this briefing is based on information available as at 3 October 2011 and may be subject to amendment. It is written as a general guide and is not a substitute for professional advice. You are strongly recommended to obtain specific professional advice from us before you take any action. No responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this briefing can be accepted by Baker Watkin or the partners.