Succession Trust or Business Continuation Trust is aimed at ensuring that a smooth transition and succession of business interests following the departure or demise of a business partner. Various problems might arise when a business partner departs or dies without having a written instruction of what are to be done. Thus, it is important for proprietors, partnerships or corporation enforce a requirement to have a written agreement willed into a trust deed in place to ensure that continuation of the existing business according to the collective agreement of the current owner(s).
Business Continuation Trust provides the solution:
- To the deceased partner's share which will be sold to surviving partners at a fair market value.
- To fund the purchase of the shares by the surviving partners through an insurance policy that will ensures the buy-sell to be carried out when the particular business partner dies or upon total and permanent disability
- To provide a smooth transfer of partner's interest at death or disability with the implementation of a trust deed
- To allows non-liquid stocks to be converted into liquid income, providing a fund for the benefit of the deceased's family members