Personal circumstances recently reiterated the need for all of us to think about and prepare for the worse. The worse relates to two main events firstly death (one of life’s certainties) and secondly mental or physical incapacity. Some business owners are likely to have considered these events from a personal perspective but I see a large majority that
The documents are very likely to allocate shares or the business to surviving spouses or other individuals but have you actually dealt with the practicalities of running the business, not only in death but for periods of incapacity. In
Questions that you need to ask yourself:
- Is my will up to date and include provisions relating to the business?
- Do I have LPA’s in place to deal with financial matters due to incapacity?
- Do I have adequate provisions in place to ensure that the business continues trading in the event of my death or incapacity?
- Do I have financial provisions in place to deal with the business in the event of my death or incapacity?
- Do I know what happens to my share in the business in the event of death or incapacity, do my dependents also know?
- Would my dependents/beneficiaries want or be capable of running the business in my absence?
- Would my dependents/beneficiaries financially be able to look after themselves in my absence?
If you would like any advice on what provisions you should be making and how you can protect your business please contact us.
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.