Reply to: Death in contract....

[mudskipper]

I have (had) a client go through this very process: Sole director and shareholder, died intestate; wasn't married but had a partner and they had an adult kid. Had no executor. I know it's slightly different south of the border but it was a real ball-ache to get this sorted out. Best advice is to get a will written and specifically write into it what you want done with your company interests. Might be an idea to appoint a Company Secretary who can at least keep the plates splinning while the lawyer is dealing with the estate.

Was discussing this the other day

The person who inherits the shares doesn't inherit them until probate is granted. And if they're under 18, all the more fun.

The advice seems to be to have something in your AoA to say that the person who is administering your estate can appoint a director. I checked mine and it's got:

14 Methods of appointing directors
14.1 In any case where, as a result of death or bankruptcy, the company has no shareholders and no directors, the transmittee(s) of the last shareholder to have died or to have a bankruptcy order made against him (as the case may be) shall have the right, by notice in writing, to appoint a person (including a transmittee who is a natural person), who is willing to act and is permitted to do so, to be a director.
14.2 For the purposes of Article 14.1, where two or more shareholders die in circumstances rendering it uncertain who was the last to die, a younger shareholder is deemed to have survived an older shareholder.


Edit: Not sure about 'transmittee' I think I'd prefer to have executor or personal representative, so it can be done before probate

http://www.domainscape.co.uk/draftin...ion_shares.php

[stek]

I'd be more worried about being shagged to death with a 33 year old wife!

Well she said she used to be a man, I misheard and thought she said I used to be from Iran...

Where's that from???

[WordIsBond]

No! My black humour, even on a forum I find this uncomfortable...

We're not married, lived together 13 years, I was alluding to the fact I'm older than her 55/33 - result! - and have arrhythmia though I'm not in any danger of early death or anything, just at an age you start to think...

LOL.

I don't know the rules, but I think it used to be that if you died intestate an unmarried partner got nothing and the kids got it all. Maybe that's safer, though. She won't poison you or kill you by, ahem, other means like NLUK suggested.

[northernladuk]

I'd be more worried about being shagged to death with a 33 year old wife!

[stek]

Did you say "soon to be ex"? If you die intestate whilst still married, she's may do a lot better out of it than you probably wanted.

Look at the bright side -- if you do die, they'd probably wrap up any IR35 investigations they are contemplating. There's always a bright side.

No! My black humour, even on a forum I find this uncomfortable...

We're not married, lived together 13 years, I was alluding to the fact I'm older than her 55/33 - result! - and have arrhythmia though I'm not in any danger of early death or anything, just at an age you start to think...

[WordIsBond]

Did you say "soon to be ex"? If you die intestate whilst still married, she's may do a lot better out of it than you probably wanted.

Look at the bright side -- if you do die, they'd probably wrap up any IR35 investigations they are contemplating. There's always a bright side.

[Alan @ BroomeAffinity]

I have (had) a client go through this very process: Sole director and shareholder, died intestate; wasn't married but had a partner and they had an adult kid. Had no executor. I know it's slightly different south of the border but it was a real ball-ache to get this sorted out. Best advice is to get a will written and specifically write into it what you want done with your company interests. Might be an idea to appoint a Company Secretary who can at least keep the plates splinning while the lawyer is dealing with the estate.

[stek]

If you are the sole shareholder then whoever you leave the shares to has to appoint a new director of the company, who can them proceed to wind it up, distribute funds etc.

If you leave shares in your will then it might be safest to leave them all to one person or a majority to one person to allow them to make decisions without it being challenged. You could add clauses to determine who gets how much cash after it has been wound up.

A solicitor should be able to sort all this out for you.

Cheers mate.

Difficult convo later with the soon to be ex-mrs-stek....

She's worse than me for the tempting-fate model!!!

I'll pop down tmrw - hopefully will be cheaper than the divorce lawyer that cost me £2k for no divorce in the end lol!!

[DaveB]

A very good question. I am assuming my accountant will clean up the mess. All taxes will be paid - then any residual will go to my wife/children/ex-wives/hookers.

What I don't want is anyone else being a director. They are then expected to provide invoices, company returns, etcetc. They might get banned from being a director. You know what HMRC are like.

You don't have a choice. If you are the sole director and shareholder, whoever inherits the shares has to appoint a new director to wind up the company. If you don't then I expect Companies House would do it and the cash would go to the treasury in the usual manner for anything left in a company when it is dissolved.

[jamesbrown]

iPhone 7Gti - prerelease.

Sounds buggy. Can you let us know when you've upgraded to a stable release and how we can then go about claiming it?

[BrilloPad]

Yeah hear ya...

How will a will give my successors access to my company stuff? Power of attorney? Suppose I'd better do a bit more research but this sort of thing you try to just sweep under the carpet...

Or just fooking spend it all before I pop off!!

A very good question. I am assuming my accountant will clean up the mess. All taxes will be paid - then any residual will go to my wife/children/ex-wives/hookers.

What I don't want is anyone else being a director. They are then expected to provide invoices, company returns, etcetc. They might get banned from being a director. You know what HMRC are like.

[stek]

What phone have you got? Can I have it?

iPhone 7Gti - prerelease.

[DaveB]

Yeah hear ya...

How will a will give my successors access to my company stuff? Power of attorney? Suppose I'd better do a bit more research but this sort of thing you try to just sweep under the carpet...

Or just fooking spend it all before I pop off!!

If you are the sole shareholder then whoever you leave the shares to has to appoint a new director of the company, who can them proceed to wind it up, distribute funds etc.

If you leave shares in your will then it might be safest to leave them all to one person or a majority to one person to allow them to make decisions without it being challenged. You could add clauses to determine who gets how much cash after it has been wound up.

A solicitor should be able to sort all this out for you.

[northernladuk]

Now I feel like my death is imminent because we're all talking about it

What phone have you got? Can I have it?

[stek]

Now I feel like my death is imminent because we're all talking about it