A Legacy Intact: safeguarding your family business in the event of divorce - Book - Page 93
WILLS
It is frequently appropriate for
shareholders
to
include
special
provisions in their Wills to deal with
their
shareholding.
Whilst
each
It is important to review Wills,
shareholder is entitled to have views
trusts, life assurance and pension
about how his or her wealth should
arrangements at regular intervals
devolve on death and to whom, it
throughout a marriage and in the
is important for that individual to
WHILE EVERYONE IS ENTITLED TO
MAKE PERSONAL DECISIONS AROUND THE
EXTENT TO WHICH THEY LEVERAGE ASSETS,
HOW THEY PROVIDE FOR THEIR RETIREMENT
OR WHO MIGHT INHERIT IN THE EVENT OF
THEIR DEATH, THESE ISSUES ARE MORE
COMPLEX FOR SHAREHOLDERS IN A
FA M I LY B U S I N E S S .
event of relationship breakdown.
consider their personal planning in
A shareholder in a family business
the context of any family succession
must ensure that his or her personal
plan given that the two are clearly
objectives do not conflict with those
inextricably linked.
which have been agreed by the family
that the Will of a shareholder and the
shareholders and must consider
company’s articles of association
IT IS KEY TO MAKE SURE TH AT THERE IS
SENSIBLE ALIGNMENT BETWEEN
INDIVIDUALS’ WILLS, COMPANIES’ ARTICLES
OF ASSOCIATION AND ANY PRE- OR
P O S T- N U P T I A L A G R E E M E N T S
the ramifications for the family
do not conflict and that the Will
business on any personal financial,
complies with any provisions in a
tax or testamentary planning. For
PNA. Whilst a nuptial agreement
example, if a shareholder leverages
cannot
his or her own assets substantially,
intention, it is common to set out
will that put their interest in the
in an agreement that the financially
family business at more risk if their
stronger spouse will ensure that their
marriage broke down?
Will contains financial provision for
restrict
It is important
testamentary
the financially weaker spouse upon
his or her death which is at least as
generous as the terms of the nuptial
agreement.
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