Ltd company - what happens if i die?

[chrisl]

Completly ligitimate question.

If the company has £100k in the bank account because of funds held back and the sole director dies, what happens to the money?

I assume it just get wound up in his estate with all his other assets and then IHT is charged on everything?

[pmeswani]

Completly ligitimate question.

If the company has £100k in the bank account because of funds held back and the sole director dies, what happens to the money?

I assume it just get wound up in his estate with all his other assets and then IHT is charged on everything?

Do you have a will?

[BrilloPad]

Surely the money is owned by the person who owns the shares : which then passes to the estate.

[Moscow Mule]

Surely the money is owned by the person who owns the shares : which then passes to the estate.

That's what I would think too.

Not sure who would organise the winding up of the companies though. I guess you could nominate somebody in your personal will.

[Nixon Williams]

Completly ligitimate question.

If the company has £100k in the bank account because of funds held back and the sole director dies, what happens to the money?

I assume it just get wound up in his estate with all his other assets and then IHT is charged on everything?

Basically yes, the shareholding in the company will form part of the estate and passed on depending on the will etc. Assuming the shares were held 100% by the deceased, the new owner would probably wind the company up.

Alan

[Nixon Williams]

Surely the money is owned by the person who owns the shares : which then passes to the estate.

Not directly - the money belongs to the company - it is for the directors and shareholders to decide what happens.

If the soel director/shareholder dies, then their legal representatives would be obliged to appoint a new director to adminster the company and presumably wind it up.

Alan