Business Protection Trusts
A business can quickly become destabilised and run into financial difficulties if a partner or shareholding director dies.
A partners or directors share protection agreement means that in this situation the remaining directors or partners remain in control
How it works
Each shareholder or partner takes out a life policy (or life and critical illness policy if preferred) on their own life. These policies are written in Trust with the partners/directors as beneficiaries. A written agreement is required.
If the worst happens the surviving directors or partners have the funds available from the policy to buy the shares of the deceased.
The business therefore has the capability to carry on and the deceased family have a willing buyer and cash instead of a share in a business in which they may not have an interest, or knowledge and which could be in trouble.
If relevant, this is one of the options we would highlight in the course of discussions around the development of a sound and comprehensive will.