Inheriting share of ltd company

[ASB]

I am by no means an expert on this sort of thing but it is my understanding that the executor of the will would act as a trustee (or appoint somebody else) for the children until they reach 18 (or older if specified, up to 25).

Normally one would specify executor and trustees were they required. Generally appoint somebody you know and trust. Do not appoint your solicitor unless charge scales are also specified. Do not appoint your bank. Unravelling an old friends inheritance I discovered the bank was charging 7% for executing what was a very simple estate.

[ASB]

Divorce doesnt revoke a will though.

The ex spouse is simply treated as having died on the date of decree absolute. This can have some unintended effects, e.g. leave everything to spouse it will be as though it was intestate. Best to make a new one under these circumstances.

[TheCyclingProgrammer]

DYOR but note that marriage revokes a will unless it is made is contemplation of that marriage e,g to still be valid, it needs to have wording something like 'I make this will in contemplation of my forthcoming marriage to [soontobemrsthecyclingprogrammer]'

B

Yes I know, ours were.

[bracken]

IIRC I paid about £200 for mirror wills for my wife and I (we got them done before we were married

DYOR but note that marriage revokes a will unless it is made is contemplation of that marriage e,g to still be valid, it needs to have wording something like 'I make this will in contemplation of my forthcoming marriage to [soontobemrsthecyclingprogrammer]'

B

[TheCyclingProgrammer]

Thanks all, was already thinking diy will is probably not a good idea. Going to call a solicitor

Definitely. Its not that your situation is particularly complex but its very easy to get wrong.

IIRC I paid about £200 for mirror wills for my wife and I (we got them done before we were married so they were arguably even more important then they are now).

You should speak to an accountant about the best arrangement for your company. Just a few things to potentially think about...

Assuming you are the sole earner, then if your wife was to die you might want to check there are no potential trust/settlement issues with your children inheriting the shares. I'm not sure if settlements legislation would apply in this case but its certainly something that warrants professional advice - under normal circumstances gifted shares to a minor would automatically be caught but this is obviously a bit different.

Likewise, if you were to die, then there probably isn't much point in keeping the company running as it no longer has any purpose. It would probably be better for your wife to inherit your share and become 100% shareholder and begin the process of closing your company down (liquidating it if necessary) and extracting the funds as a capital distribution. She'll then be free to do what she wants with this money (after taking into account any IHT issues) and assuming she's eligible for entrepreneurs relief (I hope you've made her a company officer for this reason) it will be very tax efficient.

Hopefully you can see why its important not only to get a proper will writer involved but advice from your accountant too.

[Eirikur]

Thanks all, was already thinking diy will is probably not a good idea. Going to call a solicitor

[Martin at NixonWilliams]

Trying to put together a dyi will, probably need to go to a solicitor, but I'm a cheapskate.
My wife owns 40% of ltd co and I own 60%
If one us were to die can our children (both well under 10 at the moment) inherit our share and start receiving the dividends? What I'm after are there any major legal or fiscal consequences of giving minors a.) a share and b.) pay dividends

I am by no means an expert on this sort of thing but it is my understanding that the executor of the will would act as a trustee (or appoint somebody else) for the children until they reach 18 (or older if specified, up to 25).

[GillsMan]

Forget dyi[sic] wills. They are nigh on usless. You can get proper wills done from a smidgen under £100 and they will keep a copy etc. Friend of mine had one done via the Co-operative legal services and was happy with it. Am sure a solicitor could do it for a decent price.

Agree. DIY wills are not appropriate for people with Ltd Cos. They are fine for most people in fairness, but our affairs have an added layer of complexity which should be catered for by a professional solicitor.

Writing a will is utterly sensible FYI. Anyone who says otherwise is just taking the piss.

[stek]

Writing a will is tempting fate, don't do it!

[northernladuk]

Forget dyi[sic] wills. They are nigh on usless. You can get proper wills done from a smidgen under £100 and they will keep a copy etc. Friend of mine had one done via the Co-operative legal services and was happy with it. Am sure a solicitor could do it for a decent price.

[Eirikur]

Trying to put together a dyi will, probably need to go to a solicitor, but I'm a cheapskate.
My wife owns 40% of ltd co and I own 60%
If one us were to die can our children (both well under 10 at the moment) inherit our share and start receiving the dividends? What I'm after are there any major legal or fiscal consequences of giving minors a.) a share and b.) pay dividends