Business Succession
Recent government changes to inheritance tax laws are impacting business property relief, which could affect your business. It is advisable to update your Will to include a solid succession plan to maintain business continuity. Additionally, setting up Lasting Power of Attorney documents is recommended to ensure that trusted individuals can manage your business decisions should you lose capacity.
Understanding the Impact of
Inheritance Tax Changes:
Inheritance Tax (IHT) Adjustments: The government has revised its IHT laws, which may reduce the effectiveness of business property relief. This relief traditionally helps mitigate the tax burden when business assets are passed on, but changes may mean higher taxes or different thresholds.
Business Implications: These changes can have a significant financial impact on your business’s future, and affect the tax liabilities your heirs might face.
Establishing Lasting Power of
Attorney (LPA):
Purpose of LPA: A Lasting Power of Attorney allows you to appoint trusted individuals who can make decisions on your behalf if you become incapacitated.
Business Continuity: For business owners, having an LPA in place is crucial. It ensures that there is no ambiguity about who can manage business affairs during unforeseen circumstances, such as illness or sudden incapacity.
Additional Considerations for
Comprehensive Estate Planning:
Review and Update Regularly: Both your Will and LPA documents should be reviewed periodically, especially in response to changes in legislation or business structure.
Consider Trusts and Other Legal Structures: Depending on the size and complexity of your business, setting up trusts or other legal entities might offer additional protection and tax benefits.
Engage Professional Advisors: Consult estate planning professionals, legal experts, and financial advisors on an ongoing basis to ensure that all aspects of your personal and business legacy are still appropriate.
Document Management: Maintain an organised record of all legal documents and ensure that your trusted advisors and family members know where to find them.
Conclusion: The recent adjustments to IHT laws necessitate a proactive approach in estate and business planning. By updating your Will to include your succession plan and setting up a Lasting Power of Attorney, you can safeguard your business’s future and ensure that both your personal and professional wishes are honoured, even in challenging circumstances.
Let’s Secure Your Legacy
With Jameson International, estate planning is simple, professional, and designed around you. Whether you’re preparing a Will, setting up a Lasting Power of Attorney, or ensuring your documents are safely stored, our team is here to guide you every step of the way.
Contact us today to begin planning for the future with confidence.
