The principle of protecting your personal affairs applies as much to businesses and business owners.
The process of transferring the assets of business assets to one's beneficiaries can create serious problems for surviving shareholders or business partners.
For example, would you or your business partner be content to run your business with their surviving spouse or their beneﬁciaries?
This could have a major impact on the running of the business or the value of the business may now go down following the death of such a key person.
Would they even want to be involved with the running of the business?
Many spouses would probably not want to be burdened with the running of a business they may know very little about. For instance, if there are young children to care and provide for then the surviving spouse might prefer to be bought out.
Without proper planning, both your business partner or your beneficiaries could lose valuable tax reliefs and protection from life's everyday problems.