Thank you for contacting us.
We will get back to you as soon as possible!

Contact us


You acknowledge that by submitting your details via this page, you consent to us processing your personal data in accordance with our privacy policy.

Wills for business partners

Wills for business partners

It is almost 20 years since I last spent any time studying the Partnership Act 1890 and if anyone had any questions on that topic I would direct them to one of my colleagues!

However, In the context of the preparation of Wills, and the administration of estates, there is one important element that a private client lawyer need to remember.  If there is an unwritten Partnership Agreement and one of the partners dies, then under the Partnership Act 1890 the said partnership is automatically dissolved.  If that happens any availability of Business Property Relief on the value of the deceased’s business interests will be lost, as the relevant conditions will not be satisfied.  It is therefore vital to ensure that a partnership agreement does exist if you are in business with another and there is any value attributable to that business.

When preparing a Will and thinking about one’s assets, it will also be essential to consider what assets belonged to the partnership and what assets are owned by the individual, but used by the partnership.  What will happen in the event of the death to those assets and arrangements?

If assets are owned within the partnership 100% Business Property Relief should be available.  However, if the assets are outside the partnership, but being used by the partners, 50% Business Property Relief should still be available.  Thought should therefore be given as to whether or not assets should be held in or outside a partnership, in conjunction with all other tax implications and existing agreements.

By giving the matter appropriate consideration, preparing an appropriate Partnership Deed and drafting a suitable Will, all of these issues can be addressed and appropriate solutions put in place.

For advice on any area of Private Client law, please contact Richard Horwood on 01992 300333 or richard.horwood@longmores.law.

 

Please note the contents of this blog are given for information only and must not be relied upon. Legal advice should always be sought in relation to specific circumstances. 

 

Longmores become members of ALEP
8 Jan 2019 - posted in News, Events
Author: Polja Atkins

Longmores Solicitors have the pleasure in announcing their membership of the Association of Leasehold Enfranchisement Practitioners (ALEP).

Read more
Divorce D-Day: fact or fiction?
4 Jan 2019 - posted in Blog
Author: Tracey Dargan

For many years there has been suggestion by the media that there is an official ‘Divorce D-Day’. There have even been attempts to pin...

Read more
Uninsured risks – who is to repair?
12 Dec 2018 - posted in Blog
Author: Agata Marosz

Most leases will require the landlord to insure the property with a reputable insurer to the reinstatement value of the property, together with loss of...

Read more