I have a client who is a joint share holder of their company with 3 others. It is a trading company. On the death of any director, there are life policies that pay out a fixed sum to the surviving directors to purchase the Decd’s director’s share from their Estate. Company Articles say that the estate has to sell the share and offer to the surviving Directors first - Surviving Directors do not have to accept but in all probability will.
Can this arrangement be considered an option thus making the share eligible for BPR?
I think not because the life policy automatically pays out to the other Directors on death.
Does anyone disagree?
Beviss and Beckingsale Solicitors