You may need to consider the impact on your business and/or your family should any of the circumstances mentioned above unfortunately come to pass.
- Would your family stay in the business or would they be required to sell the business?
- Would the remaining shareholders/partners, such as Canada online casino Maple Leaf, in the business have the funds needed to buy your share from your family?
- Would you have the funds available to buy your co-owner’s share of the business from their family?
- What would be the impact on your business in the event of the death/impairment of a key employee or business partner?
- What about the tax implications?
It won’t happen to my/our business
Many business owners believe that it simply won’t happen to them. The chances of one partner / director, in a two or three man business dying or becoming seriously ill before retirement, are probably a lot higher than you might think and it does happen. Quite often what is left is a very serious financial problem mainly through the lack of readily available capital to deal with the consequences.
There is a Solution
Business protection can assist in ensuring the continued survival of a business and provide for a deceased business owner’s family in the event of premature death or serious illness and incapacity.
Shareholder/Partnership Insurance (Business Owner’s Insurance)
This provides funds, through the proceeds of an Insurance Policy, to the surviving business owners to purchase the share of a deceased’s shareholding from their personal representatives. Depending on the structure of the business the cover can be set up on a personal or corporate basis. This cover ensures the deceased’s legal representatives / next of kin are provided for and the surviving business owners retain control of the business. The cover in question should be carefully co-related to a properly structured shareholders agreement that addresses the wishes of shareholders/co-owners in the event of such an occurrence.
Keyperson Insurance
This type of cover is designed to protect the human assets of the business in the same way as fire insurance protects a company’s physical assets. Protection, again through an appropriate Insurance Policy, is taken out by a Company on the life of a key employee to protect the Company as a result of the death or serious illness of the key employee.
Gift or Inheritance Tax Planning
As a business owner, it is important also to take a close look at the implications of Capital Acquisitions Tax if you are planning to pass on your business to your family when you die. Inheritance tax can become a real burden where financial resources are tied up in a business. If you do not plan ahead, your family could be faced with a difficult decision between having to sell the business or having to borrow the money to pay the tax liability. There are a number of solutions to this and Gift or Inheritance tax planning allows you to plan for the tax liabilities which could arise, thus ensuring that the business won’t have to be sold off to pay the tax bill.
The Next Step
Each of the situations outlined in this article requires very careful consideration and planning. The very first action should be to seek good and expert advice. Why not give us a call and together we can set the proper planning in train.
Exploring Your Investment Options
/in Financial Planning, How to invest a lump sum, Investment Fund, Lump Sum Investment /by Aidan WallStep 1
What do you want to do with your investment – what are your goals?
Step 2
Step 3
How much investment risk are you prepared to take or is appropriate for your financial profile?
Step 4
How much ready access to your money do you need? In general you can assume that the longer your money is invested the better the return tends to be.
Step 5
Consider your long term goals and don’t simply focus on the short term.
By taking on board the message from these 5 steps you can discover the type of investor you are and find an investment that best balances all of the criteria. These can generally be found in a combination of the following options:
Help Is At Hand
At first glance the investment world can appear confusing and an uncomfortable place, complicated by charts, tables and strange language. While ultimately the decision about where and how to invest your money is yours, professional advice is particularly important when exploring the type of investor you are – ranging from conservative right through to Adventurous and a range of options in between. This advice will then follow on to helping you choose the right portfolio of investments to match your profile. It is also important that the person giving you advice is properly authorised and qualified who can guide you along your investment journey and offer one to one advice along the way.
If you would like to explore your investment options please call Aidan Wall at 046 924 0961 or email: aidan@lifetimefinancial.ie
Protecting Your Family Business Interests
/in Business Protection, Estate Planning, Family Protection, Inheritance Tax /by Aidan WallKey Issues:
You may need to consider the impact on your business and/or your family should any of the circumstances mentioned above unfortunately come to pass.
It won’t happen to my/our business
Many business owners believe that it simply won’t happen to them. The chances of one partner / director, in a two or three man business dying or becoming seriously ill before retirement, are probably a lot higher than you might think and it does happen. Quite often what is left is a very serious financial problem mainly through the lack of readily available capital to deal with the consequences.
There is a Solution
Business protection can assist in ensuring the continued survival of a business and provide for a deceased business owner’s family in the event of premature death or serious illness and incapacity.
Shareholder/Partnership Insurance (Business Owner’s Insurance)
This provides funds, through the proceeds of an Insurance Policy, to the surviving business owners to purchase the share of a deceased’s shareholding from their personal representatives. Depending on the structure of the business the cover can be set up on a personal or corporate basis. This cover ensures the deceased’s legal representatives / next of kin are provided for and the surviving business owners retain control of the business. The cover in question should be carefully co-related to a properly structured shareholders agreement that addresses the wishes of shareholders/co-owners in the event of such an occurrence.
Keyperson Insurance
This type of cover is designed to protect the human assets of the business in the same way as fire insurance protects a company’s physical assets. Protection, again through an appropriate Insurance Policy, is taken out by a Company on the life of a key employee to protect the Company as a result of the death or serious illness of the key employee.
Gift or Inheritance Tax Planning
As a business owner, it is important also to take a close look at the implications of Capital Acquisitions Tax if you are planning to pass on your business to your family when you die. Inheritance tax can become a real burden where financial resources are tied up in a business. If you do not plan ahead, your family could be faced with a difficult decision between having to sell the business or having to borrow the money to pay the tax liability. There are a number of solutions to this and Gift or Inheritance tax planning allows you to plan for the tax liabilities which could arise, thus ensuring that the business won’t have to be sold off to pay the tax bill.
The Next Step
Each of the situations outlined in this article requires very careful consideration and planning. The very first action should be to seek good and expert advice. Why not give us a call and together we can set the proper planning in train.
Call Aidan Wall today at 046 924 0961 or email: aidan@lifetimefinancial.ie for expert impartial advice on Business Protection.
Understanding Investment Risk
/in How to invest a lump sum, Investment, Investment Fund, Lump Sum Investment /by Aidan WallIt All Begins With A Plan……
Before you begin to choose a suitable investment you will want to consider what are your investment objectives. Setting these objectives correctly based on your current situation and knowing your investment profile will form the basis for choosing the correct options.
Rating Funds
It is important to note that most managers of Investment and Pension Funds are now broadly in line with guidelines received by the European Securities and Markets Authority (ESMA) in the context of Risk Rating their Funds. The ratings are based on a scale of 1 to 7 meaning that you can now readily identify the level of “risk” pertaining with 1 being at the very lowest level and 7 the highest.
Investor Attitude to Risk
A very important piece of work that should be done as part of the decision making process is to take full account of an investors attitude to risk. There are many “Risk Attitude Questionnaires” that help to determine this and help to match the investors requirements with the huge range of investment fund options available in the market. Apart from recording the investors view it also takes account of really relevant matters such as:
Capacity to Bear Risk
This is another very important factor to take into account when constructing your portfolio. It is one matter to say you can accept risk in order to achieve high returns but another key factor must be to match your profile with your capabilities.The real message in all of this is that while there is a myriad of options and choice it is vitally important to seek and have independent advice available to you. If you need any further information on this please don’t hesitate to contact us.
Call Aidan Wall at: 046 924 0961 or email: aidan@lifetimefinancial.ie
Life Assurance – Looking After Your Loved Ones
/in Family Protection, Financial Plan, Financial Planning, Income Protection, Life Assurance, Life Insurance, Personal Finance /by Aidan WallStop, Think and Ask Yourself…
So…what are the next steps?
There are many reasons why people are slow and reluctant to put in place appropriate and sufficient Life Assurance cover.
The role of a good advisor in all of this is to help you through the process of:
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Everyone Needs a Financial Plan
/in Financial Planning, Pension, Personal Finance /by Aidan WallHow often have we heard the expression “I would not have achieved my goal without having a carefully thought out plan and sticking to it”. We hear it from high achieving people in the world of sport and business alike.
You will hear it from top class golfers like Rory McIlroy who will set his objectives, arrange his playing, coaching and work schedule for the year ahead and then go and execute that Plan. If he starts his year with no plan then he would say the focus simply isn’t there to be successful. This same principle is equally important in all other situations – the football/hurling team coach, the business manager or home-maker all need a plan. Doesn’t it make eminent sense, therefore, to seek assistance in achieving the objectives of your financial plan through each stage you face in your life?
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Pensions – No longer a luxury but an absolute necessity
/in Financial Planning, Pension, Personal Finance /by Aidan Wall2. Never panic though
3. Managing risk
4. Mix things up
5. A necessity, not a luxury
6. Keep tabs and get good advice
Source: Lifetime Financial Planning 2014