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How Can You Protect Your Business when You Die?

When you first start thinking of writing a will and estate planning, it’s likely that what you’ll think about first is your personal assets such as your property and bank accounts. You might not think about your business at all. However, what would actually happen to it if you died? Here are some important facts to consider.

Business Property Relief

Did you know that there is a specific inheritance tax relief for businesses? It’s called business property relief (BPR) and it means you can get 100 percent relief on the value of any shares you own in an unquoted business, as long as you have had the shares for at least two years before you die. There is also 50 percent business relief on land, buildings, or machinery owned by the business. This is useful to know if you are thinking about selling or transferring business shares during your lifetime – inheritance tax is charged on the transfer if it happened within seven years before death.

Inheritance Tax Planning

It’s important to speak to a professional when it comes to finding out more about inheritance tax and the planning that can and should be done around it. You will want your estate – and that includes your business – to be as protected as possible for your family who would otherwise have to pay a lot of money to the government. This is why planning everything in advance is a good idea; it may not be fun, and it may not be pleasant, but it is something that needs to be done, the earlier the better.

Business Lasting Powers of Attorney

What can really help when you own a business is to put a business lasting power of attorney (business LPA) into place. This means that someone else will be able to step in and keep your business running when you are unable to do so anymore. This could mean death, but equally it could mean should you have a debilitating accident or develop an illness that made it impossible for you to work.

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