Advice on Family Investment Companies
Family Investment Companies (‘FIC’) are an extension of typical family owned businesses and are a mechanism by which family owned businesses can distribute wealth amongst a family and potentially avoid or mitigate inheritance tax.
Ison Harrison Solicitors are experts in advising family businesses combining over 40 years experience in advising private individuals on matters such as Wills, Trusts and Estate Planning together with advice from our specialist commercial lawyers. Between these specialisms we are able to advise owners of family businesses on a number of strategies when planning for IHT and succession planning in businesses.
Statistically over 65% of businesses fail when being passed from the first generation to the second generation and less than 10% of family businesses survive the transition for first generation to third generation.
The cause of failure can be numerous but often central issues relate to a lack of planning, understanding or training when businesses are passed down to other family members. Ison Harrison can assist in advising on this and managing the careful balance between the personal and professional relationships concerning family members in this scenario.
Family Investment Companies can involve complex planning work around the structure of a business and can involve creating multiple share classes and it is important that expert advice is taken so that there is an understanding as to how to distribute these shares and how this interacts with personal wills and estate planning.
If you want further advice on this, contact Richard Coulthard on 0113 284 5095.