FOLLOWING on from our previous article, once the family has decided on the future of the business and the succession planning, certain steps need to be taken to put it all in place.

This may involve some lifetime transfers of parts of the business e.g. land or shares in the company or even the preparation of a new partnership agreement or the incorporation of the business.

All too often it is the end game that is forgotten – the will. You can plan for the future of the business all you like but if there is no will there could be adverse consequences for the business.

If you own a small company, who will inherit your shares in the event of your death? If you have a partnership some of the assets may be held outside the partnership and need to be left to the appropriate beneficiaries.

If you don't leave a will, your estate will be shared out among your next of kin according to a strict order of priority called the 'rules of intestacy'. This means that people you want to benefit from your estate - such as a partner you're not married to or in a registered civil partnership with - might get nothing.

Family members who may not be party to the succession of the business may inherit. This could fragment the business or worse make it unworkable leading to potential collapse.

It is therefore important that when the planning process has been decided the lifetime strategy is put into effect and also a will is made. Not only will this ensure the passing of the business assets to the next generation in accordance with the succession plan but also steps can also be taken to maximise reliefs.

You may be able to claim special relief for the following assets.

*business assets - such as shares in a business partnership, family company shares, land, buildings and machinery.

*agricultural property - such as land, working farmhouses, farm workers' cottages and barns.

*woodland timber.

Everys Solicitors has a wealth of experience in advising on the succession of family farms and small businesses and tax planning.

If you would like to discuss your situation or find out more details, contact Hilary Quantick on 01823-337636 or e-mail to hilary.quantick@everys.co.uk