Estate Planning

At CM SME Club, we understand the importance of safeguarding your business legacy. Our estate planning services empower you to make informed decisions about the future of your company and ensure a smooth transition for your loved ones.

Our Services:

  • Drafting Wills
  • Setting up family trusts
  • Preparing Lasting Powers of Attorney
  • Business Succession Planning
  • Estate Planning Training
1. Drafting Wills

Drafting a will empowers you to make informed decisions about how your assets, including your business interest, will be distributed after your passing. A well-drafted will offers several advantages:

  • Drafting and negotiating loan agreements, director and shareholder loans, and bank debt facilities.
  • If you have minor children, you can designate a guardian to care for them.
  • You choose a trusted individual (Executor) to oversee the execution of your will and manage your estate.
  • A clear will reduces the likelihood of disagreements among beneficiaries regarding your wishes.
  • Your will can be structured to minimize tax burdens.
2. Establishing Family Trusts

A family trust is a legal entity that holds assets for the benefit of designated beneficiaries. This can be a valuable tool for business owners:

  • You can distribute assets to beneficiaries gradually, according to your wishes and their maturity level.
  • A trust can safeguard assets for vulnerable beneficiaries who may not be equipped to manage them responsibly.
  • A trust can protect beneficiaries from debt as assets placed in a properly structured trust may be shielded from creditors of the beneficiary.
  • A trust can be used to allocate funds specifically for a beneficiaries' education.
  • A trust can be a mechanism for transitioning ownership and control of your business to chosen successors.
3. Preparing Lasting Powers of Attorney

A Lasting Power of Attorney (LPA) empowers a designated person (your attorney) to make decisions on your behalf if you become mentally incapable. This is crucial for business owners as it ensures:

  • Continuity of Business Operations: Your attorney can ensure your business continues to function smoothly if you are incapacitated.
  • Financial Management: Your Attorney can handle your financial affairs, including business accounts, to avoid disruptions.
  • Decision-Making Authority: You determine the scope of your attorney's authority, tailoring it to your specific needs.
4. Estate Planning Training

Estate planning can be complex, and having a clear understanding of the options available is essential. CM SME Club offers training programs designed to:

  • Equip you with Knowledge about the various estate planning tools.
  • Equipping you to make informed choices regarding your business and personal estate.
  • Assist you with developing effective communication strategies to discuss your estate plan with your family and advisors.
5. Business Succession Planning

Business succession planning focuses on ensuring a seamless handover of your business ownership and management to your chosen successors. This comprehensive approach offers numerous advantages, including:

  • Setting out what your family will inherit.
  • Explaining individual responsibilities and how to manage assets.
  • Incorporating strategies to minimize tax burdens on your beneficiaries when they inherit the business or sell their shares.
  • Controlled transition outlining your preferred method for transferring ownership and management, whether through a designated successor, buy-sell agreements, or other strategies.
  • Specifying charitable contributions you wish to make from your business assets.
  • Planning for incapacity where you address how your business will be managed if you become unable to handle your affairs. This may involve appointing a trusted individual through a Lasting Power of Attorney.
  • Appointing Professionals such as legal or financial advisors to ensure the smooth running of the business during and after the transition.
Benefits of working with CM SME Club:
  • Experienced Guidance: Our team possesses in-depth knowledge of Kenyan estate planning laws and their application to small businesses.
  • Tailored Solutions: We understand that every business is unique. We work closely with you to develop a personalized estate plan that aligns with your specific goals and circumstances.
  • Minimized Disruption: Our proactive approach helps to minimize potential disruptions to your business operations during the transition period.
  • Peace of Mind: With a well-structured estate plan in place, you can gain peace of mind knowing that your legacy will be protected.

We're here to help

Whether you have questions about our services, need legal advice, or want to learn more about how we can support your business, our team is ready to assist you.

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