Business Owners | Gresham Wealth Management

Being a business owner often means facing many unique challenges. Using our knowledge and experience of understanding both personal and business objectives, we are able to assist business owners to navigate the financial planning landscape by creating a financial plan that is tailored to your personal goals, as well as your aspirations for the business.

By working alongside you and your fellow directors, we are able to help shape your future, providing precious peace of mind for you and your family.

Furthermore, we are able to identify areas in which the expertise of other professionals needs to be sought such that your interest in the business is protected and tax efficiency is maximised.

We appreciate that goals and objectives can change at different stages of your personal and business lifecycle, and by reviewing your circumstances on a regular basis, our plans can be adapted to ensure the stability of both your personal and business finances.

Pensions

Pensions play a key role in developing an effective financial plan for business owners. The legislative status of pensions makes them a vital tool both for extracting business cash, and managing the personal tax position of the business owner.

Making pension contributions is, in most cases, a highly tax efficient method of extracting profit from a business. Furthermore, pensions can be used to purchase commercial property, and some have the ability to make a loan back to the business to ease future liquidity issues.

Under current legislation, there are significant benefits to using a pension for inheritance planning purposes which can significantly reduce future inheritance tax liability.

Pensions can prove complex and the application of specialist expertise can help to navigate legislation to help business owners maximise on their own position.

Our financial advisers work closely with our business owner clients to ensure the correct structures are in place and that these deliver in line with investment goals. When it comes to winding down involvement in the business or retirement, our team can advise on how to draw retirement income whilst looking to retain the longevity of a pension pot.

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Shareholder Protection

One of the greatest risks to a business is that one of the owner operators dies or becomes critically ill. Aside from the emotional distress caused by such an event, the surviving owners may find themselves facing an uncertain future regarding the running of the business. Shareholder or partnership protection helps to ensure continuity of the business in such circumstances.

If a contingency plan has not been put in place for such an event, it may be that the deceased’s share of the business passes to one of their family members. It is quite possible that the beneficiary has little interest in the business or is unable to meet the requirements of running the business. If this individual has an equal or majority share, it may become difficult to make future business decisions or convince the beneficiary of the estate to sell their stake at a reasonable price.

Shareholder or partnership protection provides an agreement between shareholding directors or partners in the event of death of one of the owners. The agreement is backed by a life assurance policy which helps the surviving business owners pay for the deceased’s share in the business.

Ultimately, the aim is to ensure that control of the business is retained by the surviving owners and the beneficiaries of the deceased’s estate are sufficiently compensated for the deceased’s share in the business.

Equally a partner or shareholder who suffers a serious illness may not want to continue in the business after treatment. Critical illness cover on such a policy can ensure that in such unfortunate circumstances, the business owner would be compensated for their exit.

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Key Person Insurance

Many businesses will find that as they grow, certain employees will gain responsibility for a set of key areas. Whether by evolution or design, directors may find that they no longer have knowledge or control over these areas, meaning the key delegated individuals will often retain a large amount of information.

Whilst a great lesson in the art of delegation, placing key responsibilities within the domain of a small number of individuals can represent a risk to the business, particularly if one of these key individuals dies or develops a long-term illness.

Such circumstances can put a business under severe financial strain especially if the key individual is a director or senior manager and therefore has a pivotal role. In some instances, the untimely exit of a key individual can even put the ongoing operation of a business into jeopardy.

In order to protect your business from the financial impact of such an eventuality, Key Person Insurance is available to compensate a business for the loss brought about by death or long term illness of a key employee. Key Person Insurance is designed to pay out a lump sum on the death of the insured key person during the policy term. Policies can also include critical illness cover, designed to pay out a lump sum on diagnosis of an illness included in the cover.

Alternatively, a regular income can be paid to the business if a key person is off with long term sickness. This valuable cash injection to the business can help with a potential loss of profits and/or provide funds to replace the key person in question.

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I am only in this position because of you. One of the best decisions I have ever taken going with GWM.

With great thanks for all your reassuring attention over the last year. It means more to me than I can express in a few words.

I just want to thank you and your team so very much for all you do for me throughout the year. It is a real comfort to know that my investments are in such capable hands. I literally couldn’t do it on my own.

We are both very grateful for the time you spent with us in explaining various options. We certainly feel we now both have a much better understanding of our situation & the decisions which we need to consider moving forward.

Thanks again for your advice, you have given me the kick I needed to take control and I’m very grateful for that.

We feel we can phone at any time during office hours if we need anything clarifying. Our financial adviser knows our personal circumstances and is in tune with our goals and lifestyle. His advice has been and continues to be excellent.

You’ve solved that dilemma for me… Thank you for being so clear and honest as always.

A very personalised service… All advice is tailored to my needs with great consideration to issues I may not have thought of myself. I feel confident about my future finances.

Thank you so much again for your time and brilliant advice.

Just a big thank you for all you have done for our family. We do appreciate it.