Wednesday, 27 July 2011

Who will run your business if you can't?

Could Your Business Go The Way of Gretna Green FC?

Gretna Green FC were a phenomenon of Scottish Football, a community club that soared from third division obscurity to the Premier League and crashed into administration almost overnight.

The story that is never told is what happened, why did the money stop? The case is a sad and a salutary tale for anyone who runs a business. The club was run by one man – dubbed the ‘Roman Abramovich of Scottish Football’ – sadly he was not in the best of health, more unfortunately for the club he was the only man who could sign the cheques and authorise payments from the bank so when he became seriously ill nothing could be paid and the whole company crumbled around him.

This could have been avoided with the right planning – in this case a Lasting Power of Attorney for his business dealings could have authorised someone he trusted to look after his and the company’s interests whilst he lacked the capacity to do so.

This story is unusual but highlights the need to extend your planning beyond the day to day running of the business.

Wills and Lasting Powers of Attorney are frequently pushed to the back burner but they are critically important when things go wrong or in planning your tax and succession strategy.

Ask yourself –

  • How would your business trade if you couldn’t make the decisions and sign the cheques?

  • Could the business continue if your estate was caught in the probate process?

  • Would you be content to run the business with your partner’s surviving spouse or children?

  • How do you buy your business partner’s family out?

  • Does your Will make the most of the Tax breaks available to the business?

  • What are IHT, BPR and APR, more importantly how do they apply to me?

If you don’t have good answers to these questions then you need to talk to us, call on (01778) 341490.

Hard work and dedication has meant that you have built up a sound business to benefit you and your family don’t let the lack of simple planning take it all away.