How Business Protection Trusts work

Each partner or shareholding director effects a life policy (or a life and critical illness policy if preferred) taken out on their own life.

These policies are then written in trust, with the partners or shareholding directors of the business as the beneficiaries. A written agreement will be required.

This means in the event of a claim the surviving partners or shareholding directors would have the funds from the policy proceeds to purchase the deceased's partner's or director's share of the business.

What this means for the business

This arrangement ensures that the business can continue and provides flexibility and available capital.

What this means for the deceased partner / shareholding director's dependants

They have a willing buyer and cash instead of a share in a business that they may have no interest in