When establishing a business, it is important to protect your interests in the event of serious illness, incapacity or death. We will work with you to identify the risks surrounding you and your co-directors or business partners.

Business Protection

If you’re in business, you know the importance of insuring it against loss from fire or theft. However, there are other circumstances that can have damaging and lasting consequences for your business. Indeed, without the right kind of protection, your business, and your family’s finances, could be jeopardised.

Why kinds of protection or insurance should I consider?

Partnership Insurance

This can be taken out by members of a business partnership of any kind. In the event of the death of one of the partners, it will provide funds to allow for the purchase of the deceased’s share of the partnership from the deceased’s next-of-kin.

Partnership Insurance – FUNDING THROUGH LIFE ASSURANCE

This allows the partners of a business to provide funds to make a payment to the estate of the deceased partner in respect of his/her share of the partnership. The life assurance contracts are taken out by the partners personally. This ensures the surviving partners retina control of their business. TWO forms of life assurance can be taken out:

Shareholder Protection

This allows the shareholders of a limited company access to funds in order to purchase the share of a deceased shareholder. These funds are provided through Life Assurance contracts, with the company paying the premium. This ensures the surviving shareholders retain control of their business.

  • Own Life in Trust

  • Life of Another

Co-Director Shareholder Protection

With this arrangement the company agrees with each shareholder to buy back his shares from his personal representatives on death. The insurance cost is covered by the company. This offers security for the business and peace of mind for the family/dependants of the deceased.

Keyperson Insurance

This allows a limited company to plan for the potential financial loss that it would suffer on the death or serious illness of a key employee. For example, would loans to the business have to be repaid on the death of a specific individual?

Gift or Inheritance Tax Planning

It’s a good idea to plan in advance for any tax liability which could arise on the transfer of a business upon death. Having a plan in place can ensure that the business won’t have to be sold off to pay inheritance tax or gift tax.

Ask yourself…

  • Will I be able to pass my business on to my children intact without it being ravaged by tax?

  • How will my family survive financially in the event of my sudden death?

  • How would the business survive in the event of my sudden death or the death of a partner?

  • What would happen to my income in the event of a long-term absence from work due to illness?

If you and your business partners are interest in the areas of business protection, it is highly and strongly recommended that you seek professional advice before committing to any specific structure as this can be a very complicated area.

For a better understanding of Business Protection, please call Wallace Financial on 087-8167221 or email info@wallacefinancial.ie