Securing the ownership of your business and the future of your family.
Smart protection strategies to keep control in the right hands.
Preserving Control with Share Protection
For many private businesses, the death of a shareholder can trigger a crisis of ownership. Without a plan in place, shares typically pass to the deceased’s estate—usually a spouse or family member. This can leave surviving business partners working with a new owner who may have no knowledge of the industry or interest in the company, while the grieving family is left with shares they cannot easily sell.
Share Protection (often supported by a “Cross Option Agreement”) helps solve this dilemma. It provides the surviving shareholders with the funds to purchase the shares from the estate. This ensures the business stays in the hands of the people who built it, while the family receives the fair cash value of the inheritance.
Relevant Life Plans: Efficient Life Cover
For company directors and high-earning employees, a Relevant Life Plan is a popular way to provide life insurance. Unlike a standard personal policy paid from net income, this is a “death-in-service” benefit paid for by the business. The premiums are typically treated as an allowable business expense for Corporation Tax purposes and are not usually treated as a P11D benefit for the employee.
While these plans are designed to be tax-efficient, tax legislation is subject to change. Kingsbridge acts as your protection specialist, but we always recommend confirming the specific tax treatment of premiums and benefits with your company accountant.
Stability for Everyone Involved
Combining these protections creates a robust safety net for the entire business ecosystem. It prevents the need for surviving owners to borrow money or deplete company reserves to buy back shares during a difficult time. Simultaneously, it ensures that dependents are financially looked after without having to get involved in the complexities of running a company.
At Kingsbridge, we work alongside your existing accountant and legal advisers to structure these policies correctly. We ensure the agreements align with your Articles of Association and that trusts are set up properly, giving you the peace of mind that your commercial legacy is protected.
