Business Continuation Clause
When someone owns a Business, there are various extra considerations to take into account. Very often, choosing the end beneficiaries of the Business will be straightforward for the client(s); for instance, the Business may first pass to the surviving spouse, and then, on second death, to the children.
Whilst the Beneficiaries may for instance be as straightforward as mentioned above, it is very important that someone qualified continues to run and manage the Business, after the client's death.
Where a Business Continuation Clause is included within a Will, Business Executors are appointed, which would usually be someone qualified to run the Business (although may be a close friend or existing Business Partner).
The Business Executor is not a Beneficiary of the Business, but will ensure that the Business continues to operate smoothly until it is either sold and the proceeds passed to the Beneficiaries, or it is transferred absolutely to them.
This allows chosen people to carry on a Business, which is very important as a Business's value could decrease very quickly after death, without proper management, and inheritance can be significantly reduced for the owner's Beneficiaries if a Continuation Clause is not in place.
Without a Business Executor appointed, it may not be possible for cheques / payments to be made by the Business, which could quickly result in a total commercial disaster.
Business Lasting Power Of Attorney
This helps to protect the Business value, should a Business proprietor lose their mental capacity. The Attorneys can therefore continue Business operations, whilst maintaining the Business value.
A Business Attorney is similar to a Business Executor, but, unlike a Business Executor who will act when a client passes away, a Business Attorney will act if a client loses mental capacity. This is again, very important, as if a client is unable to operate his business, it stands to lose value very quickly if someone hasn't been appointed to step in and act.