Monthly Archives: July 2017

10 Guiding Principles to facilitate Family Business Succession Planning

I read recently about some of the more pertinent family business succession planning principles worthy of consideration. Having first-hand experience of dealing with family businesses, we have witnessed some of these principles in action together with the problems that can occur if these are not followed.

  1. Beware of the tax driven/cost saving succession plan: Research indicates that often, far too much attention is given to technical components such as tax, trusts, insurance and shareholders agreements, whilst insufficient time is given to softer touchy feely issues like wishes and aspirations of the family members, integrating and preparing the next generation and family harmony.
  2. Creating a legacy: Most successful family businesses adopt this concept. The founders of the family business have created a family asset that the family would like to continue to cultivate to establish a lasting legacy for the founders.  Applying this principle means that the family wants the business to remain in the family with all future generations acting as ‘stewards’ to safeguard the family business, grow it and make it better for future generations.
  3. Opportunity versus entitlements: Successful family businesses ensure that future

What is Evidence-Based Investing?

Often in my blogs, you will hear me refer to ‘Evidence-Based Investing’ which reflects the investment philosophy adopted by Carpenter Rees Ltd.    This week, I thought I would share with you an Infographic which explains how this differs to ‘Traditional Active Investing’.   Whilst the two offer very different approaches to investing, at Carpenter Rees we don’t believe in timing markets, making knee-jerk reactions or acting on ‘expert’ opinions; we prefer to work with long term academic evidence in order to allow investments the time they need to do what we feel is most important to our clients ….achieve long term returns aimed at meeting their personal aspirations and financial goals.

Click here to view in detail our one page investment philosophy comparison.

 

 

Inheritance Tax rule changes

This week, I thought I would outline how effective estate planning can help safeguard your wealth for future generations.

If you want to have control over what happens to your assets after your death, effective estate planning is essential.  After a lifetime of hard work, you want to make sure you protect as much of your wealth as possible and pass it on to the right people. However, this does not happen automatically. If you do not plan for what happens to your assets when you die, more of your estate than necessary could be subject to Inheritance Tax.

The rules around Inheritance Tax changed from 6 April this year. The introduction of an additional nil-rate band is good news for married couples looking to pass the family home down to their children or grandchildren, but not every estate can claim it.

Bereaved families

 This tax year, more than 30,000 bereaved families will be required to pay tax on their inheritance[1] according to the Office for Budget Responsibility,. So, it pays to think about Inheritance Tax planning while you can and work out how much potentially could be taken out of your estate – before it becomes your family’s problem to deal with.

A recent Inheritance Tax survey conducted by Canada Life [2]  shows that Britons over the age of 45 are either ignoring estate planning solutions or they have forgotten about the benefits these can provide.   Only 27% of those surveyed have taken financial advice on Inheritance Tax planning, despite all of them having a potential Tax liability.

Leaving an estate

Every individual in the UK, regardless of marital status, is entitled to