The Situation:
David, 55, runs a successful family business. His will leaves everything outright to his wife, with no succession or tax planning. He dies suddenly.
Poor Succession Planning Can Put a Family Business at Risk
The Fallout:
- His wife inherits the business but has no interest in running it.
- She feels forced to sell quickly, losing significant value.
- On her later death, the sale proceeds are subject to inheritance tax.
- The children inherit less than they should.
What Would Have Happened:
With proper planning, David could have:
- Ensured the available Business Relief (BR) was utilised to reduce inheritance tax.
- Transferred the business into a trust for his children.
- Ensured continuity and preserved the company’s long-term value.
Why this matters:
Business owners need tailored inheritance planning; otherwise, years of work risk being lost to poor succession planning and unnecessary taxes.
At Hedges Law, we create wills and trusts that safeguard businesses and pass them on smoothly.
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