I would appreciate any views on the following circs - H&W had discretionary trust Wills but wish to simplify and now would like a flexible LIT over property and residue for the benefit of the surviving spouse and then outright gifts to the children on the passing of the survivor. H has a business, H is the sole Director and shareholder and also has a couple of rental properties, he is happy for these to pass in accordance with residue. There are no IHT concerns as the estate currently stands. Although they are concerned that the business should be able to operate from the date of death until Probate is Granted to avoid the business suffering - my view is that this is covered by 17 (2) of the model articles which have been adopted here, so that the PRs could appoint a Director to continue running the business. Are there other considerations that should be looked at in this scenario or express powers perhaps that should be included within the Will to further protect the position? Thanks for any thoughts.
Hello RHW,
Id agree with your analysis with a single company director you can rely of the model articles of association. We’d typically include reference to “Clause 4.8 of the STEP Provisions” which I’d suggest would provide enough powers to assist the executors.
Richard C. Bishop
Premier Estate Planning