SUDDEN DEATH of my partner - Stuck in limited company with 2nd property - HELP!

anselld

Running a Ltd Co is simple enough but you will need an accountant to help.

You first need to get your head round the fact that the Company is a completely separate entity as far as money is concerned.

All income and expenditure must be recorded.  That can be as low tech as a shoebox of receipts if you want.

You neet to file confirmation statement and accounts once per year. can find the dates on Companies House.  And you need to file a corporation tax return to HMRC.  These things will be done by the accountant.

The good news is yes, you can take money out from the Company tax free for the time being because the Company owes you money (the Director loan).  Until that is repaid you can take out spare cash, you just need to log it as a loan repayment by the Company.

If you do decide to sell, it is possible for an investor to buy the Company rather than the property thus avoiding SDLT as the property ownership remains with the Company.   However, a better price may be obtained from a private buyer even though they pay SDLT.   Estate Agent would advise on how to maximised value if you go the sales route.

buildingbee

Hi everyone,

I was expecting to be told you deserve it for me being a fool, but I am so surprised by the amount of support.  Thank you so much for your kind words and condolences.  It means a lot to me and I really appreciate it.

I hope you can forgive me, but I'm already stricken with grief and haven't got the strength to reply to everyone individually, but I'll try and provide a generic reply to all your posts as best as possible.

• I'm not very tech savvy and I'm actually using my nephew's computer and his account, so apologies for any confusion.  
• Yes we were married.
• He contributed very little pension when he used to work, although not sure how much.
• I don't believe he had any life insurance or any other insurance, or service that I know of.
• We  have joint bank accounts as well as separate accounts.
• He didn't get any advise off anyone - not even an accountant as he said he knew what he was doing in terms of setting up a limited company.
• Yes our residential property is as joint tenants
• He didn't leave a will
• Other than the remortgage money that was given as a director's loan to the company and then the property bought, we only have £300 in the business account - Would this be enough for an accountant advice?

Regarding the 2nd property:-

• I agree with what most of you are saying that I should consider somehow cutting our losses short and selling the property
• Assuming the property is sold, how hard is it to wind-down a company? Can I do this myself to save money?
• Since company was given a director's loan from our mortgage, can I withdraw any left-over money to my personal bank account?  For example if we've sent £1,000 as a director's loan to the company and have only £300 left, am I allowed to take that money back?  If so, how do I do this

Apologies if I've missed anyone out and once again thank you to you all for the advice you have given to me.

brianposter

Does the company have a separate bank account, and, if so, who can sign for the account ?

silvercar

buildingbee said:

Hi everyone,

I was expecting to be told you deserve it for me being a fool, but I am so surprised by the amount of support.  Thank you so much for your kind words and condolences.  It means a lot to me and I really appreciate it.

I hope you can forgive me, but I'm already stricken with grief and haven't got the strength to reply to everyone individually, but I'll try and provide a generic reply to all your posts as best as possible.

• I'm not very tech savvy and I'm actually using my nephew's computer and his account, so apologies for any confusion.  
• Yes we were married.
• He contributed very little pension when he used to work, although not sure how much.
• I don't believe he had any life insurance or any other insurance, or service that I know of.
• We  have joint bank accounts as well as separate accounts.
• He didn't get any advise off anyone - not even an accountant as he said he knew what he was doing in terms of setting up a limited company.
• Yes our residential property is as joint tenants
• He didn't leave a will
• Other than the remortgage money that was given as a director's loan to the company and then the property bought, we only have £300 in the business account - Would this be enough for an accountant advice?

Regarding the 2nd property:-

• I agree with what most of you are saying that I should consider somehow cutting our losses short and selling the property
• Assuming the property is sold, how hard is it to wind-down a company? Can I do this myself to save money?
• Since company was given a director's loan from our mortgage, can I withdraw any left-over money to my personal bank account?  For example if we've sent £1,000 as a director's loan to the company and have only £300 left, am I allowed to take that money back?  If so, how do I do this

Apologies if I've missed anyone out and once again thank you to you all for the advice you have given to me.

If the company sells the property, the director can choose to withdraw the loan. So you get all the money back. You can then close the company.

You really need to employ an accountant yourself, they will advise you the best way forward. 

gettingtheresometime

Right 

I have experience of what you're going through as my husband also died suddenly and we were both directors of a ltd company.

firstly I am sorry ...not only do you have to deal with the bereavement you've whole raft of legal things to deal with as well.

but you can do this, it will be a little more complicated because of the lack of a will but it's not insurmountable. You don't need a solicitor- I did everything myself.

PoppyVale

I honestly don't have any advice but just wanted to say how sorry I am for your loss. I am sure you will get some good advice on here. Please contact a bereavement support and get some help. All the best. 

propertyhunter

Although legally you are responsible since you are a director of the company, don't feel you have to do any of this alone. Get help from family and friends. 

I'm not sure £300 will cover you - you'll need to get quotes from three firms and go from there, explaining your situation. I have a ltd company, but would have no clue how to close my business - I just leave it all to my accountant. You need an accountant's advice - and it'll be worth paying for it - perhaps ask family/friends for a short-term loan, explaining what it is for - and that it will be repaid when the house is sold. Together with an estate agent's advice regarding selling the property, you'll be fine. 

markin

Will the not be life insurance for the remortgage.

elsien

Question already asked. The OP thinks not. 

WhiskersTheWonderCat

You keep referring to this as a foolish and stupid decision, but I don't see it that way at all. Your partner was clearly trying to provide a better future/retirement for the both of you, and it would have done that if not for tragic and unexpected circumstances. Obviously, the difficultly now is that your partner was the one experienced in managing such things, and you are not comfortable in doing so. But all is not lost. You have a second property that you own outright. You said it is nearly fully renovated, so that should add some value to it. Once you sell it, you should be able to repay your loan and own your residential property outright again. I am so sorry for your loss. I hope you have lots of support from your friends and family to help guide you through all of this. Your husband clearly loved you a lot and was trying his best to provide a comfortable future for the two of you.