Shareholder/ Partnership Protection
The loss of a partner, member or shareholding director can have a major impact on the success of a business in terms of ensuring continued control for the remaining owners. This kind of destabilisation can quickly lead to financial difficulties.
If a partner in your business dies, their share of the business is passed to their estate. The family of the deceased then have two main options;
• To take over the deceased’s role themselves
• Or sell their share to someone else
Are either of these options something that your company would want, or would you ideally want to keep control of what decisions your business makes?
With either of these outcomes you could find yourselves working with an unwelcome director or somebody with less industry experience, qualifications and ability.
Share Protection allows the surviving partners, directors or members to control the business following the death of a partner, by paying out a lump sum to help purchase the deceased partners/directors/members interest in the business.
Each director can take out life assurance with critical illness cover that is equal to the value of their shares. All policies are then written in to a trust. This is a reciprocal arrangement that helps the surviving members to keep control of the business by giving them the option to buy the interest of any member who dies. It also provides the estate of the deceased with the option to sell to the remaining members. This is called a Cross Option Agreement.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE