A Legacy Intact: safeguarding your family business in the event of divorce - Book - Page 95
A Will should therefore make proper
It is therefore advisable to take
provision for the financially weaker
action to review the Will before
spouse and take account of the
the final order to cover the, albeit
provisions of any nuptial agreement.
unlikely, event of death before the
divorce is concluded.
Careful consideration is required to
“
A S P E C T S O F W E A LT H
MANAGEMENT SUCH AS
WILLS AND LIFE
ASSURANCE ARE NOT A
‘ONCE AND DONE’
EXERCISE.
WE ADVISE
INDIVIDUALS WITHIN
BUSINESS OWNING
FA M I L I E S T O R E V I E W
AND UPDATE THESE
SORTS OF PROVISIONS
R E G U L A R LY, A N D O F
C O U R S E, A LWAYS I N
THE EVENT OF
MARRIAGE OR
DIVORCE.
”
H AY D E N B A I L E Y
P R I V AT E W E A LT H
PA RT N E R
ensure that the terms of the Will do
Steps might include removing the
not breach any agreement reached
separated spouse as executor and
at family level about any family
trustee and removing them from
business interests and to seek to
benefit as beneficiary. Wills are
protect those interests in the event
often drafted such that the spouse
of a dispute in relation to the Will.
has power to appoint new trustees
during
their
survivorship,
giving
Shareholders are generally advised
them a degree of control over any
to keep their Wills under regular
Will trust arrangements.
review. In the event of matrimonial
breakdown, a shareholder is advised
Thought should however be given
to review their Will. The legal
to whether, in that unfortunate
position is that the Will remains valid
event, the spouse might then remain
until the divorce is finalised (‘final
involved for the benefit of the
order’). Once the final order has
children as they will retain parental
been granted, the shareholder’s Will
responsibility (e.g. as guardian).
remains in force, but the law treats
There may also be Inheritance Tax
the divorced spouse as having
reasons why the separated spouse
already died, to the extent they might
should remain as a beneficiary
receive benefits or act as executor.
as the Inheritance Tax spouse
exemption will remain available until
the final order.
A LEGACY INTACT - PROTECTION
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