The Business Protection Trust


The purpose of a Business Trust is to receive the settler’s business assets prior to, or upon their death and to protect these assets for the benefit of the beneficiaries.

The benefits of a Business Trust are:-

  • Ensures the business shares, or the capital from the sale of the shares, remains outside of the estate of the beneficiaries
  • Provides a framework for next generation tax benefits for the beneficiaries
  • Allows the benefits to remain in the trust rather than being absolutely disbursed
  • Reduces the impact on the assets of the trust from social impacts and third party claims, such as a divorcing spouse, or creditor
  • Provides flexibility to trustees on how and when benefits are released e.g. income only


The establishment of Business Trusts as part of your overall estate planning framework is key to protecting YOUR business for YOUR family.

Business planning for clients requires a combination of specialist Legal advice, Accountancy advice and Financial Planning advice.

The estates of the majority of small and medium sized business owners are quite often neglected.

What was once an Inheritance Tax exempt asset via Business Property Relief can suddenly attract 40% tax as it passes down the generations. Even worse still, half the business could suddenly belong to a future spouse, or to your children’s future spouses!

Common shortfalls include a total lack of bloodline protection planning, no controlled succession planning and the omission of additional legitimate tax planning.


For more information about Business Protection, download our guide to Tax and Trust Planning here.

If you would like to discuss Business Protection with a member of the team please call 0800 211 8526