Family Investment Companies – Do I need to know about them?

You own a business and are working hard towards making it the success you dream of.  You know that business planning is a crucial part of that success.  You know personal planning is equally as important to achieve those personal goals and ambitions that will make it all worthwhile.

Once you’ve planned your exit – whether that’s a sale, a restructure to involve employees currently in the business and or to family members – how will you plan to make sure the wealth generated for you and future generations is protected and will be utilised in accordance with your wishes?

Securing your legacy

Securing your legacy is always a key consideration for any client and it’s important to put plans in place to protect the wealth for future generations; reducing the possibility for tension or disputes to arise, ensuring direct descendants can benefit from the wealth and even ensuring sufficient proportion of the income (or capital) goes to good charitable or social causes.  All objectives of recent matters we’ve dealt with.

Family Investment Companies are an easily understood mechanism for you to be able to structure your wealth to do just that.  Without the ties and binds of a trust, that can separate the control of wealth creating assets from the beneficiaries of the wealth those assets generate and cause long term, inter-generational friction.

The Flexibility to set out different wishes for income, capital and control within a company structure and enable asset classes of all different types to be held within the same vehicle is an attractive option for many.  Succession is secured and easily understood.  Shares in the company can pass on in accordance with the rules governing the operation of the company – securing your legacy.

Current tax framework around estate planning can make Family Investment Companies a tax efficient model too.

Long Term View

A properly planned and structured Family Investment Company allows a long term view to be taken for you and future generations (providing income in your retirement and keeping capital out of your estate for example).

We always work with your other advisers to create a structure and rule book that is unique and right for you.

Next steps

If you’d like to know more about Family Investment Companies or have any business succession or wealth planning queries do get in touch: please contact Stephen Attree or Lucy Harrison from our Family Business Team us on 0161 926 9969 or familybusiness@mlplaw.co.uk

About MLP Law

At MLP Law we make achieving your successful outcome and ensuring your peace of mind our personal mission.  Working with you every step of the way and providing advice and support whatever your needs.