Family Planning

Been advising a clients family the best way for them to protect family assets and make sure they are available to pass down the generations. 
So many families are worried about losong assets to the tax man or the local authority to pay for long term care fees. 
If you are also worried about this lets have a chat about the best way for you to protect your assets for your children and grandchildren.

Your Will needs to deal with Your BUSINESS!!

Your hard work and dedication to your business has meant that over the years you have built up a business for the benefit of your family, and on death you want to ensure that your family and loved ones are provided for.

But who would actually be entitled to your share of YOUR BUSINESS?

Certain restrictions may apply dependent upon whether the business is operated as a Sole Trader, Partnership or as a Limited company.  In the case of a Limited company, what happens may be pre-determined by the memorandum of articles. They could state that other shareholders have the right to buy out your interest. If you wanted one of your children to inherit your interest in the company this may not be possible without further planning.

As a Sole Trader you may wish to leave your business to your child who works with you, and then divide the rest of your assets between your other children. Unless this is set out within your Will a family dispute could quickly arise if the other children feel they ought to be entitled to a share in the family business too.

If you die without a valid Will, your share of the business would be subject to the Laws of Intestacy and the person who inherits may not be the person you intended or may be someone who is unsuitable to carry on your business.

It vital that your Will clearly defines what happens to your interest in your business on death.  Your Will needs to ensure your beneficiaries are able to inherit your interest, your company can continue to operate and this is dealt with in the most tax efficient way.

It is essential that you have a Will and that the Will reflects your own business situation.  Ideally you should have put in place a succession plan that does not depend solely upon your death but which provides for the situation where you are unable to manage the business due to ill health or infirmity.

Gifts to Children - a Cautionary Tale

When writing a Will it is highly possible that the client will want to make a gift to a minor, or there could be the possibility of a minor inheriting under a per stirpes clause. It is very important to consider what actually happens with such a gift and who should act as a trustee in such circumstances.

Money can bring out the worst in people as Claire Sproston found out after discovering her father and stepmother had stolen the inheritance she had been left in her grandfather’s Will.

Miss Sproston’s grandfather, Benjamin, passed away when she was just 13 and had made a Will naming his six grandchildren as Beneficiaries, each receiving an equal share of his £50,000 life savings.   Miss Sproston’s inheritance was placed in trust until she turned 18.  When she reached the landmark age, Miss Sproston enquired about the money only to be told by her father, Nigel, that he changed the trust and she would have to wait until she was 21 to receive her inheritance.

It was only after Miss Sproston consulted her cousins that she realised something was afoot and that her father would not have been able to alter the terms of the trust. She promptly went to see a solicitor who discovered the sad truth; her inheritance had gone.

Nigel Sproston and wife Jane were found guilty of fraud at Cardiff Crown Court and jailed for ten and nine months respectively.  The couple lied to solicitors and an investment company as well as forging Miss Sproston’s signature in order to get their hands on the £13,000 inheritance.

The Telegraph reported that Nigel Sproston, who pleaded guilty to fraud, told police he “spent £2000 of it paying off debts, £5000 on a holiday for myself, gave £1500 to charity and the rest just got frittered away.” His wife denied the charge but was found guilty nonetheless. Speaking after the verdict, mother-of-one Miss Sproston, now 22, said: “I’m still denying to myself, really, that either of them could have done what they did. When I first found out what my father had done, he told me he did it out of anger because we were naughty as kids.” “My dad has never told me what he did with my money. I don’t know if I will ever get it back.”

Although the subject can sometimes be a difficult one to raise with clients there should always be a discussion about the suitability of the trustees. If there is any doubt they should consider appointing a professional trustee to manage the fund.