Are you and your business protected?

You begin by starting your own business, this may be on your own or you have fellow owners who share the same goals as you….

Build the business – look after our families.

All companies focus on the goals and objectives of its owners, but an unexpected event could be devastating for the business and its structure.

If a co-owner or shareholder were to die the shares would commonly be inherited by the spouse/partner. This may cause a number of serious problems such as:

  • Can you raise the capital to acquire the shares if the spouse/partner wants to sell?
  • Ensuring the spouse receives a fair price for the shares
  • The introduction of an unsuitable buyer of the shares
  • Unfavourable prospects of the spouse/partner keeping the shares
  • Any impact on the confidence and productivity of employees
  • Attraction from competitors and the poaching of staff


Partners’ share protection – case study

Glowing Electrical Services is a partnership of Clive Sparks, Alan Cable, Richard Power and Dave Current. GES is currently worth £100,000 and has equal partners. GES wants to have protection in place should any of the partners die unexpectedly.

Each partner tales out a £25,000 term assurance to retirement age. The policies are written under Trust for the other partners, with all four of them as trustees. Each has signed a Cross Option Agreement, so, if Clive Sparks dies, the life office would pay £25,000 to Alan, Richard and Dave as Trustees. They would split the money between themselves as surviving partners and beneficiaries and each use their money to buy Clive’s shares from his wife.

Clive’s estate ends up with £25,000 cash for the value of his shares. Alan, Richard and Dave can continue with Glowing Electrical Services as equal partners with no further obligation to Clive’s wife.