Independent Financial Advice for Business

We can add value in two main areas:

  • Partner or shareholder protection: if a shareholder in a business dies unexpectedly, then the other shareholders are faced with the possibility of suddenly being in business with the beneficiaries of the deceased’s will. For many, this will be a decidedly unsatisfactory state of affairs. It can be solved relatively simply and inexpensively by using life assurance, trusts and cross-option agreements. This arrangement would allow either the deceased’s beneficiaries or the remaining shareholders to elect for the remaining shareholders to buy out the deceased’s share of the business using proceeds from the insurance policy.
  • Key man protection: if a key employee (including owners and directors) dies or contracts a dread disease, the company’s financial position may be seriously compromised. For example, if a shareholder guaranteeing an overdraft dies, this could make the bank extremely nervous about maintaining that facility. As another example, a key salesman’s absence could affect the company’s profits significantly. These risks can normally be insured, so that a lump sum insurance payout would supplement the company’s profits or bolster the balance sheet whilst a replacement member of staff is brought on board and made fully effective.

For more information, call us on 01494 461221 (High Wycombe, Buckinghamshire) or Email: peter.clarke@acpifa.co.uk

The Abbott Clarke Partnership Ltd is authorised and regulated by the Financial Conduct Authority and entered on the FCA register (www.fca.org.uk/register) under reference 564807

The information and content of this site is directed at UK consumers only and is subject to the UK regulatory regime.
Registered office: 7 Elmhurst Close, High Wycombe, Buckinghamshire, HP13 6DL Registered in England No. 06667115

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