“I need to find an exit for my shares when I am not around.“

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Why do you need a Business Trust ?

A well-constructed plan is essential to protect the value of the business and provide cash for the family in the event there is a major disruption in the business due to a co-owner’s death, disability, retirement or serious major illness or any other event that jeopardizes the continuity of the business.

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Ask yourself:-

• If a co-owner dies today, can you work with his family to run the business?

• Will the co-owner’s family members know how to run the business with you?

• Can they work well with you?

• Would your beneficiaries be able to get a fair price if they wanted to sell the shares?

• Do you have the funds to buy out the deceased co-owner’s shares/interests from the family members when there is no pre-agreed price in a written agreement?

• Can the shares/interests you are purchasing be transferred quickly to you?

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The Solution – Business Value Protection Trust (BVPT)

Our BVPT ensures a smooth transition of the business to the other co-owner(s) and the value of your share of the business is protected against an event such as:-

• Death

• Incapacity

• Ill health

• Retirement

• Disappearance for an agreed period

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Our BVPT consists of:-

• A Buy-Sell or Cross Option Agreement: covering the terms of the sale and purchase including the agreed value or formula, events triggering a sale, funding and mode of payment.

• Power of Attorney: authorizing us, Rockwills Trustee, to transfer the shares/interests to the other co-owner(s) upon the occurrence of the agreed events that trigger a sale.

• Trust Deed by the co-owners: instructions to Rockwills Trustee regarding the periodical distribution of the sale proceeds to prevent these being misspent by the beneficiaries.

• Life insurance policy: as the main funding mechanism to purchase the shares/interest of the outgoing co-owner.

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Advantages of BVPT

• Guarantees the sale of shares/interest at a full and fair value that was agreed by co-owners.

• Prevents inexperienced and unqualified heirs from being involved in the business or the selling of the deceased’s shares to outsiders.

• Smooth transfer of ownership to the co-owners is ensured by the Trustee.

• By using life insurance, the purchase of the shares/interest becomes very affordable, minimizing the need to borrow or strain family finances for the purchase. More importantly, it ensures that the other co-owner(s) have the necessary funds to pay for the shares/interest.

• Rockwills Trustee acts as the Trustee for UBiz protecting the interests of your beneficiaries and that of the co-owners.

• Shares/interests are easily converted to cash.