What would happen to your business if a shareholder died?? We ensure your business continues and the family of the deceased shareholder is protected, using business wills and share trusts.

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Company Wills
How to preserve your business
assets for future generations.

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Hard work and dedication has
meant that you have built up
a sound business to benefit you
and your family and naturally,
you would want to ensure that
your loved ones are provided
for, in the event of your death.
So what if you want to sell the
business, or the worst should
happen and either you or a
business partner were to suffer
a serious illness, or die?
Without the appropriate
Business Succession strategies:
Your spouse / partner and children may not inherit
your share of the business.
The business may have to be sold and the proceeds
become liable to inheritance tax and capital gains tax.
The proceeds from the sale of a business would be
at risk from 3rd Party Claims such as divorce, creditors
and Long Term Care Fees
The business may be vulnerable to any future changes
to the legislation on Business and Agricultural Property Relief.
Business partners may not be able to buy out
the deceased’s share.
The surviving spouse or children may be obliged
to take over the running of the business.
The value of the business could depreciate owing to
the inexperience of a beneficiary.
Some or all of the above
problems will affect you if:
You are a partner or shareholder in a business and
all of the above issues are made worse, if you are
a minority shareholder or, the sole owner of a business.
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This example illustrates a two
partner business but are
also applicable to multiple
shareholders / partners.
Director A’s
Share
50%
Director B’s
Share
50%
Each Director leaves their share of the Business
to their beneficiaries via their WIll.
Director A
Will
Director B
Will
Director A’s Beneficiaries Director B’s Beneficiaries
Typical Planning - Will only You may already have this
type of Company Will in place,
however the following problems
may affect the surviving directors
and your family.
Problems for the surviving family:
Your beneficiaries will now own part of the company
which they may not want to run.
Your share of company is now part of beneficiaries’
estates and therefore is at risk from divorce, remarriage,
bankruptcy and long term care.
If your beneficiaries decide to sell the business,
the proceeds will enter their estates creating
a potential IHT liability on their death.
Problems for the surviving directors:
They may not want to run the company in
partnership with your beneficiaries.
They may not have the funds to buy out your
share of the business.
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You may even have taken your
business assets planning a step
further and set up a standard cross
option agreement, but this would
not solve the following issues:
Problems for the surviving family:
Your beneficiaries now have the funds from the Life Assurance
policy. These funds are now part of their estates and so
will be assessable for Inheritance Tax when they die.
These funds are also at risk from claims from divorce,
remarriage, bankruptcy and long term care.
Problems for the surviving directors:
The surviving director(s) now owns 100% of ABC Ltd
which is at risk from 3rd Party Claims such as divorce,
remarriage, bankruptcy and long term care.
Whilst trading, Business Property Relief is applicable.
However if the business is sold, the cash proceeds will
then be part of the surviving director(s) estate and
so will be assessable for Inheritance Tax upon death.
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The potential combined IHT bill is £1,080,000
Director A and Director B each own 50% of ABC Ltd
which is valued at £1,800,000.
Director A dies leaving 50% of the business to his beneficiaries.
The Cross Option Agreement is executed resulting
in £900,000 entering the beneficiaries’ estate.
When these beneficiaries die the potential IHT bill
on these funds is 900,000 x 40% = £360,000.
Subsequently, Director B decides to sell the business
resulting in £1,800,000 entering his estate.
When Director B dies he leaves a potential IHT bill of
£1,800,000 x 40% = £720,000
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Example of the potential Inheritance Tax liability
for a Ltd Company / Partnership
ABC LTD
£1,800,000
A - 50% B - 50%
With the correct planning in place the potential
70% tax rate could be reduced to 00%

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Our objective is to ensure
that you retain both control
and access to all your property
to enjoy throughout your lifetime,
whilst your assets are held in
a tax efficient environment,
not simply for your own lifetime,
but for the generations to follow.
Tax Protected Trust Strategies
Countrywide have strategies that not only mitigate Inheritance Tax
on your estate, but also others that may be triggered on Income and Gains.
Our offshore strategies fall outside of the current DOTAS regime and
are tried and tested using steps firmly based in current UK law.
These strategies utilise reliefs laid down in current legislation, many of
which are not being utilised by the majority of tax payers, both individual
and corporate.
PROFIT
ASSET SALE
FROM BUSINESS
CORPORATION
TAX
SALE OF
ASSET
BUSINESS
SHARE SALES
CAPITAL GAINS
TAX
SALARY
DISTRIBUTION
OF DIVIDENDS
RENTAL INCOME
DEPOSIT
INTEREST
INCOME
TAX
DEATH
INHERITANCE
TAX