Independent Financial Advice for
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
- 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 make an online enquiry via our form.