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How to fairly take on a family business
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Value the business as is. Pass that to the one(s) that want to work it. Deduct an equivalent amount in the parents’ will for future inheritance. Eg if total estate would now be £1m, business part of it is 200k. Sibling working business gets 200k now, leaving 50k for future of their “share” of quarter of £1m. Their share in future would be 50/800, so they get that when the time comes and remaining siblings get 250/800 share each.
Hopefully parents continue for long enough (7yrs?) that IHT isn’t an issue on the business part; all siblings benefit by lower IHT on future inheritance. Business continues so parents and siblings happy,I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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