Share Protection Assurance

When a shareholder of a business dies the shares automatically form part of the estate and are distributed according to the wishes of the Will.

The result of this is that the beneficiary of the shares is entitled to annual dividends and may automatically qualify (subject to the amount of shares received) for voting rights and could instruct a winding up order.

What the company would prefer to happen in most cases is to buy the shares back. What the beneficiary of the shares would prefer to happen is to receive the cash value in recognition for the shares.

A Life Assurance Policy on the life of the shareholder for tthe value of the shares can be set up to provide the right level of cash at the right time for the right people.