Business Continuity & Estate Planning for business
Putting in place the right structure to maintain your business in the event that you are incapacitated, and protecting it for
future generations of entrepreneurs is crucial to effective business continuity.
Preparing your business for the time when you need to pass on responsibility
Over 50% of businesses don’t have a business continuity plan in place. Businesses that can’t overcome disaster are unlikely to survive, and yet the solutions that will protect your business and mean that it will continue to operate are simple.
When it comes to you and your key people, putting in place the right structure in the form of Estate Planning that considers who will operate your business when you are gone, and Lasting Power of Attorney if you are incapacitated, means the difference between your business continuing to thrive, and ceasing trading.
Estate Planning
Passing a business interest or shares on to a beneficiary can be complex and attract a tax liability for the individuals to whom you wish to leave your business assets. Incorporating this aspect of your estate into your will can ensure that any tax liability is mitigated, and your beneficiary receives everything that you planned to leave. It also means that your wishes will be carried out. This can be particularly important where you are leaving an operating business in your will.
Placing your business interests in a trust can be an effective way of ensuring that your business continues so that your beneficiaries can take part in its operations, and enjoy its ongoing success. There are several different types of trust, and all have complex requirements to meet when they are set up. We recommend that you seek professional advice when setting up a trust to avoid a challenge in court.
Lasting Power of Attorney for Business
There is a Lasting Power of Attorney designed specifically to deal with your business interests should you become incapacitated through injury or illness. The instructions that you leave must be followed. They will ensure that your business can continue without interruption. Your instructions will ensure the continued operations of your business. So access to bank accounts, carrying out contractual obligations, and your HR responsibilities, for example, can be allocated to a person or people for the purposes of business continuity, until you can return, or in the worst case, be replaced. That means that you can choose the right people to take care of your business in your absence, without the worry that someone less capable gets involved.
