PRACTICAL PROTECTION FOR sole TRADERS AND PROPRIETORS
open to the door to putting the right protection in place
The British Government’s 2024 Business Population Estimates reported that there are 3.2m sole traders and over 50% of limited companies have a solo (or significant majority) shareholder. Whilst we think of these trading entities as fairly straightforward, they open to the door to complexity when it comes to putting the right protection in place. In this session Gary and Marus will discuss the unique requirements we should consider when advising solo business owners to make sure we can communicate the financial risks they and their families may face if the worst happens.
Our discussion will cover what happens administratively and practically to trading and other responsibilities when a sole trader or proprietor dies, the additional pressures place on those left behind, eligibility requirements for Relevant Life and Executive IP, management of the costs associated with bringing a locum in manage trading affairs during a tumultuous period, the opportunities afforded by the use of Employee Ownership Trusts, and more broadly the importance of well-considered practical protection recommendations for the millions of sole traders and proprietors we all look after.
Learning objectives
By the end of the session you will
1. Identify the impact both administratively and practically to trading and other responsibilities when a sole trader or proprietor dies
2. Understand the unique requirements we should consider when advising solo business owners to make sure we can communicate the financial risks
panellists
Marcus Primhak - Business Protection Manager, LV=
Gary King - Head of Protection Specialists, Vitality
Disaster planning for business owners
how to ensure the wheels don’t come off a business if an owner dies or is incapacitated
It should be essential that all businesses have considered the impact of any disaster yet many don't consider the impact of loosing an owner. The discussion will look at what business owners can do to mitigate the impact and why they might want to think about succession planning and key things to consider. The recent changes to Business Property Relief and the impact on Inheritance Tax planning for business owners also drives many of the considerations behind their plans
Insurance can play a role in managing these risks and what provisions need to be in place to ensure smooth succession and minimal tax implications. Hear how both the advisers and the expert solicitor can bring to life a valuable solution for your clients.
Learning objectives
By the end of the session you will
1. Know how to position insurance as a solution to business owners facing new IHT risks, and how to have a broader conversation about risk analysis, planning and mitigation
2. Understand when to bring in other professional advisors to support the client (and adviser) and know who these should be
panellists
Lee Thomas - Protection Consultant, Pangea Life
Mihiri Gajraj - Partner and Head of Private Client, Trethowans LLP