Whether you are a sole practitioner, the owner of a company, or a dominant partner in a business, you are creating a legacy. That legacy requires an infrastructure to ensure its smooth running if you die unexpectedly or are incapacitated for the long-term.
In a worst case scenario the business abruptly loses its captain, outgoings such as rent, salary and insurance continue, revenues dwindle, staff and clients become disaffected and the business fades with you. This won’t just effect your family financially but emotionally and practically, as they will be left to sort out the mess on your behalf.
And so a plan is required. A plan that includes written guidance on what should happen next; a plan that instructs executors or attorneys to step in and run the business; a plan to apportion share capital in your absence and to ensure that decisions won’t be made by the wrong people.
As with every aspect of this business, it’s about more than tax, and it is vital that we consider the lifestyle effects of the decisions that you are (and are not) making.