DFA Law’s approach to estate planning is comprehensive, collaborative and highly personalised – exactly what clients need to ensure everything is in place to provide for their families and dependants and to secure the future of their business.
The Wills, Trusts and Estates team at DFA Law has almost doubled in size in the past three years and, led by Partner Hannah Furr, has built a reputation for working with family and owner-managed businesses to meet the challenges of how they are going to pass the business on, advise on the options available to them, understand their Inheritance Tax (IHT) position, and ensure their wishes are met when the time comes.
It’s a difficult process for anyone to go through, few people like to consider a time when they are no longer around, but early planning can bring peace of mind that, whatever the circumstances, the future is taken care of.
Hannah said: “The DFA Law approach is about providing a comprehensive set of services under one roof and my team and I work closely with the Corporate and Commercial Team, the Employment Law team and our mental capacity and later life planning specialist Becky Edmonds to help clients meet all their needs.
“In addition, we work closely with independent financial advisers (IFAs), accountants and tax advisers to get a clear understanding of the circumstances so that we can provide clients with the advice they need to make sure they have everything in place in what can seem like a very complex process.”
The Wills, Trusts and Estates team is proud to work with generations of the same family as a business is passed down from one to the next, a clear indication of the trust that is placed in the expertise of Hannah and her colleagues. Their reputation has also led to an influx of new business in recent times and the team has grown to reflect that.
Everything starts with a detailed discussion with a client to find out exactly what their approach is to their estate, what are their circumstances and how do they wish for their loved ones to benefit.
Where a client still owns their business, they need to consider how they will pass the business down to their children on their death… does one child work in the business? Should that child receive a larger share? How do they equalise the inheritance across all of the beneficiaries in these circumstances? What is the IHT position and how can this be mitigated?
It is never a case of one size fits all. Often there are lots of unknowns. It could, therefore, be beneficial to include a discretionary trust in their will – for flexibility, to allow decisions to be made at the time of death, rather than years in advance. A discretionary trust involves the appointment of trustees who, when the time comes, will make decisions about how the estate is divided up. Alongside the inclusion of the trust in the will, the individual writes an informal Letter of Wishes, setting out their intentions. That letter can be updated at regular intervals, or as circumstances change, providing up-to-date guidance for the trustees when it comes to executing the estate.
“We also work closely with our Corporate and Commercial colleagues to make sure shareholder or partnership agreements reflect the individual’s estate planning and that everything is kept up to date.”
“However, once someone sells their business, they may well find that they go from being an owner with assets tied up in the business benefiting from tax reliefs that suddenly aren’t there any longer. It could be that they find themselves with a significant exposure to IHT and we’re here to help them navigate that. That’s where our relationships with the financial professionals come into play. Firstly, we have to make sure our client has enough money to provide for themselves for the rest of their lives, then we can look at what happens to the rest. That might mean restructuring their assets, gifting, or setting up trusts for grandchildren, for example.”
“The main consideration for us is that most people simply want to know that plans are in place, that IHT has been considered, and steps have been taken, so that their families are looked after,” said Hannah. “It’s not easy, we don’t always want to think about a time when we’re no longer around, and there’s no doubt it can be very complicated, but if you have worked hard for many years to build up a successful business, it’s vital that you have made provision regarding where your assets and estate end up when the time comes.
“DFA Law is here to help, providing expertise and guidance so that everything is in place and all the different aspects of an estate are covered so that the money you’ve worked hard for over all those years goes where you want it to go.”
For more details, contact Hannah Furr on 01604 625380, email Hannah.Furr@dfalaw.co.uk or visit www.dfalaw.co.uk
