We often meet clients who do not realise the importance of estate planning where they are involved in a private company as a director and/or shareholder.
Recently, we met with a client to prepare their Will, they were ready to tell us about their intentions for their assets and children. However, when we tried to discuss their business succession, they had not thought about it or reviewed their company constitution and trust deeds to see if they provided any options.
We know you work hard to ensure your business is thriving which is why it is important to consider every scenario. A death may leave your business without someone appropriate or properly authorised to immediately manage the business.
Our experience with small-to-medium businesses, coupled with our extensive Wills and Estates knowledge, allows us to develop tailored, practical, and holistic succession planning for you.
If you do not have a Will – BEWARE! The following risks are just some of the lengthy and costly delays that may arise for your family and your business:
- If there are other directors, your family may not continue to have a say in your business;
- Your family may not receive distributions from the business;
- There may be lengthy delays in making business decisions;
- There may be an inability to continue operating your business;
- Your business may be forced to cease trading;
- Your business may be unable to pay employees or suppliers;
- Your business may be unable to deal with banks or other institutions; and/or
- If you are sole or majority shareholder, your business may not be sold because there is no recognised owner of the shares.
It is easy to see how the above risks could quickly have a disastrous effect on the reputation and value of your business.
Your family may be forced to apply for letters of administration to manage your estate which is both costly and time-consuming.
LET US HELP YOU!
It is important to have appropriate succession planning mechanisms in place to ensure your wishes are carried out.
We have experience in both commercial law and succession law – if you plan to leave a lasting and stress-free business legacy to your family, call us today to discuss your business and your Will!