Page 45 - Bespoke EPG 2017 Digital

■■ Where he leaves the business to someone in terms of a Will, he could also
leave that person with enough capital to assist that new person’s purchase.
A life policy could be taken out whereby the sole proprietor is the life assured
and the potential new owner in terms of the Will is the beneficiary. The policy
proceeds on death would form part of the deceased’s dutiable estate, but the
amount of cover could be increased to mostly cover this as well.

■■ The executors could also arrange for the sale of the business whereby the
purchase price will form part of the deceased estate in terms of estate duty
and other taxes.

■■ Ultimately, a sole proprietor’s beneficiaries will benefit from a well thought
out succession plan.

■■ A sole proprietor who instructs his executor to sell the business and ensures
that his business will continue uninterrupted after his death, will benefit his
beneficiaries in the long run, as a beneficiary is likely to receive far less if a
business is sold on the basis of fixed assets, stock and a debtors book rather
than as a going concern.

Establishing and monitoring a succession plan also provides excellent ongoing
opportunities for reviewing an organisation’s aspirations and strategies.
Succession planning in a business is not easy, and this chapter merely provides
a broad overview of key aspects relating thereto. The assistance of a skilled
professional to assist in the logical planning of your business succession issues
is essential.

42