Chris Thorpe looks at how trusts can be used for businesses and family succession.
One problem which the owners of family-run businesses may encounter in later life is what to do with the business once they retire. If the children want to run the business, then that’s ideal; however, what if those children are less than suited to run the business without supervision? Also, what if the children are perfectly capable of running it but don’t want to? Or what if the family is worried about their spouse taking control following a divorce? A third-party sale may be possible, but the business could lose its identity, even if the right buyers are found. It could be sold to employees through a management buyout, but that involves finding the right, trustworthy people. So, what are the options?
A trust is effectively another person which can hold property on someone else