Liberty Partnership

Legal Services Lincolnshire: What Is A Cross Option Agreement?

Legal services Lincolnshire can consist of a wide range of different financial and legal options and advice, not only for your personal situation but also for business too. It is always best to find an independent financial advisor to assess all areas of your life and offer ideas on how you could better manage your finances. If you are in business, for instance, they may choose to raise the subject of a cross option agreement.

A cross option agreement is common in business. It stands alongside a good life insurance policy for the joint owners of a business, and it can be arranged through an independent financial advisor Cambridge. The agreements that are put in place are there to reflect the value of the business as it relates to each different partner. This will depend on how many shares they hold, and what would happen to these shares when they die. Every year, after the submission of the year end accounts, the policy should be re-evaluated in case anything has changed over the last 12 months. Lincolnshire financial advisors can discuss the options with you, and whether you want to include the cross option agreement with your business life insurance. The cross option agreement means that, if the surviving owners of a business want to buy the deceased party’s shares, the deceased’s estate must sell them. Alternatively, if the estate wants to sell, the other partners must buy them. This is not a binding agreement, and that means that the shares won’t be assessed for Inheritance Tax, and could be subject to some form of tax relief in some circumstances.

When you need advice about legal services Lincolnshire, speak to the experts at Liberty Partnership Ltd. Our website is full of useful advice and lists our exceptional services. Take a look at https://liberty-partnership.co.uk. You can get in touch on either 01778 342291 or by emailing advice@liberty-partnership.co.uk. We can answer your financial questions.