Business Succession Planning
Secure your business success by planning what will happen with your hard work after your death; speak to our succession planning solicitors today to form a comprehensive succession plan that considers every aspect of your business and how it will fit into a will or trust, ready to be distributed to your chosen beneficiaries when the time comes. The solicitors at JMW have helped many business owners ensure that their wishes are carried out after they die.
To speak to our business succession team, call us today on 0345 872 6666 or fill out an online enquiry form.
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How JMW Can Help
We draw upon our commercial law experience to draft comprehensive business succession planning documents that protect your interests and aim to minimise the effects of tax as much as possible. Inheritance Tax (IHT) can cost you and your family a significant percentage of your assets - an estate above the £325,000 threshold will be subject to a 40% tax. We have helped countless business owners to reduce their tax liability in order to pass on more of their wealth to their beneficiaries.
The core aspects of business succession planning include:
- Helping you to identify business assets to be included in your estate
- Writing and registering a will with the inclusion of your business assets
- Creating and registering a trust with the inclusion of your business assets
- Guiding you through the signing of any necessary documentation
- Advising you on how best to avoid any disputes that may have a chance of arising
Following the creation and implementation of your succession plan, we offer regular reviews of the plan to make sure any changes to the business are taken into account. We can also help you to wind down or split up and sell your business after your death if this is your wish. We can help you to put a plan in place that will assure this and provide you with legal advice to ensure any tax-saving opportunities are identified and made use of.
Being an all-service law firm, we can cater to most clients’ needs by working closely with our corporate, real estate commercial and restructuring departments.
Meet Our Team
Our business succession team offers strategic advice to help you protect your business legacy, ensuring a smooth transition and securing the future for your successors.
Why Choose JMW?
Due to our many successes over the decades that JMW has been operating, we have received recognition as one of the UK's top law firms. Our wills, trusts, tax and succession planning department has played a significant role in helping JMW to achieve this status, and we bring our award-winning legal service to every case to ensure we meet our clients' needs.
We have worked with many different types of businesses. Whether you are a family business owner looking to secure your family's future, or a corporate director with the goal of passing on the mantle of responsibility, we are prepared to meet your objectives. We frequently work with high-net-worth individuals who are concerned for the safety of their finances. We understand the stress of managing large estates and have the experience to help you secure yours.
When you begin your succession planning with us, we can work closely with you to ensure you understand every aspect of the process, or we can take your objectives and work on them while you focus on other aspects of your life. Our service is highly customisable to your needs, and our solicitors are ready to work with you to ensure you feel confident that your business will be managed properly.
Award-winning team
Our team is recognised in Chambers & Partners and the Legal 500. We have won industry awards, including Team of the Year at the Manchester Legal Awards.
Diverse clients
We have assisted with a range of complex requirements for a variety of charities and high-net-worth clients, including families, business owners, entrepreneurs, sports professionals, and entertainers.
Cutting-edge
Our team is made up of young, dynamic solicitors who have over 35 years of collective experience in delivering high-quality work, and understand the environments you operate in and the need for bespoke succession planning.
Regardless of the structure of your business, our solicitors will provide advice and guidance to ensure your interests are protected. We are experienced and determined solicitors who will handle your case with the utmost care and diligence.
FAQs About Business Succession Planning
- What is business succession planning?
Business succession planning is the process by which a business owner identifies new leaders who can replace them in the event of their death. The process involves identifying the individuals and developing their skills to ensure they are able to fill key roles within the company.
- Why is a succession plan important for businesses?
Having a succession plan in place prevents your business from being taken over by someone you have not appointed in the event of your death. It ensures that your wishes are met after you die, and that plans are in place to protect the interests of your staff and profitability.
- What type of business succession plan should I have in place?
The business succession plan you put in place will depend on whether you are a sole trader, limited liability partner (LLP) member, director or partner. For instance, if you are a sole trader, you might want to appoint a special executor in your will to run your business. If there is more than one shareholder, you should ensure a shareholder agreement is in place.
For business partners, you should consider a key man insurance policy to allow the other partner to buy your shares when you die. A partnership agreement should also be in place to ensure dissolution does not occur on your or your partner’s death.
Regardless of the structure of your business, our solicitors are here to help and will provide advice and guidance to ensure your interests are protected. We can also provide assistance in winding down your involvement with the day-to-day running of a company.
- What will happen to my business if I die without a succession plan?
Following the death of the business owner, the business assets will most likely be absorbed into the deceased's estate and distributed along with the rest of their property. If the business owner does not have a will in place, the court will decide how the assets are divided. This means they will usually go to the family members of the deceased.
However, dying without a succession plan in place can lead to a high IHT liability and the family will have minimal control over who the wealth goes to, meaning it may not be managed in the best way, or the way that the deceased would have wished for.
In cases where the owner of a large business dies, the ownership may be passed on to the board committee to decide. In cases where one business owner of a group dies, the shares may be split between the other owners. If you are a family member of the deceased and find yourself in any of these cases, you should speak to a professional solicitor to find out the best way to manage the situation, otherwise, disputes could arise and lead the situation to become difficult.
- Can a business be inherited?
A business can be inherited by anyone who is specified by the business owner to receive it. However, they may not be able to enjoy the full value of the business's assets due to IHT costs. Therefore, a business succession plan should be put in place.
- Do you pay Inheritance Tax on a business?
A business is treated like any other asset in an estate, therefore, it contributes to the value of the estate. An estate is subject to IHT if it is valued higher than £325,000, so a business's value in an estate may incur IHT. Relief is available for some privately owned trading businesses, and JMW can advise further in relation to this aspect of IHT mitigation.
- What happens when a business partner dies?
When a business partner dies, any business assets that they own will be distributed as part of their estate among their beneficiaries. If the partner does not have a succession plan in place, the contents of their estate will be distributed by the court.
Talk to Us
Contact our experienced and knowledgeable team of solicitors today to discuss business succession plans. We are on hand to guide you every step of the way throughout the process.
Contact us by calling 0345 872 6666. Alternatively, request a callback by filling in our online enquiry form.
