case study

Protecting the family business for future generations

the challenge:

A business with a national brand, owned by a family of shareholders, had three concerns: dealing with the potential for inheritance tax (IHT) on the death of any of the major shareholders in the future, putting a succession plan in place for running the business and protecting it from dilution as shares are passed down the generations.

our approach:

We discussed their concerns with them and advised the two senior generations to put the bulk of their shares into trust. While the grandparents could not benefit from this arrangement the parents and future generations could. This allows the family to continue to control the shares, through their appointment as trustees, and protects them against the potential imprudence or misfortune of future generations with the family’s main asset.

the result:

The transfer of shares into trust secured valuable business relief from IHT and capital gains tax; the appropriate family members are continuing to run the business and the shares are protected from future IHT whether the business is retained or sold.