The Problem to Solve
The deceased’s shares passed to his spouse under his will. She had no interest in joining the business but expected to be paid for her shareholding and fast. The business had no funds ringfenced, and no formal agreement in place to support a clean buyout.
The surviving shareholders faced a dilemma: raise capital urgently (and dilute equity or take on debt), or accept an unwilling co-owner who couldn’t contribute but now held veto rights on key decisions.
The Breakthrough Approach
ContinuityPoint had been engaged just months earlier to review the firm’s protection planning. Acting quickly, we put in place a tailored Shareholder Protection arrangement, supported by a bespoke cross-option agreement and a business trust structure. The life policy was already live and assigned at the time of death.
Unlike many advisers who provide generic insurer templates and disclaimers, we ensured all documents were drafted as part of a joined-up legal and insurance process, so no loose ends.
What We Achieved
A full insurance payout was made within 28 days. The proceeds were used to purchase the deceased’s shares at the pre-agreed valuation, honouring his family’s interest while returning control to the surviving shareholders.
The business avoided a dispute, retained operational agility, and the family received the value their loved one had helped to build in cash, not uncertainty.
This wasn’t just protection. It was preservation of ownership, relationships, and reputation.
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