Business and Career Wealth Succession
Building and managing a business or professional career is a massive undertaking. Usually, that undertaking is done with one goal: to create wealth and a certain standard of living and lifestyle.
The protection of that wealth and lifestyle should be at the heart of your business or career plan.
What should you be thinking about?
- An exit strategy for your wealth from the business
- The succession of earned wealth through the family
- Managing your business if you become incapable of doing so
- What happens to wealth on divorce or separation?
Below is a brief idea of how you might manage some of these issues.
Cross option and key man insurance
This is where an agreement is put in place between co-business owners that provides a structure to acquire a deceased owner’s business assets for an agreed value. This is normally linked to life insurance on each of the business owners to facilitate the purchase price. The arrangement provides security for the surviving family and value in the business
Wealth passing outright to family or a partner takes away control over the ultimate destination and use of that wealth. Second marriages and immature children are often recipes to water down wealth. A Flexible Will introduces trusts as a vehicle to pass business and personal wealth into, enabling you to govern who has access to your wealth and structure the succession of business interests appropriately.
If you lose capacity you can decide who acts on your behalf.
Separation and divorce often lead to unpleasant and costly arguments about wealth distribution. Fairly and sensibly drawn up agreements help avoid the extremes of argument and cost in the process of divorce.