Business question
Discussion
Recently my father died and left a business that I’ve worked in 26yrs
Stepmum and me agreed to 50/50 on his house and 50/50 on the business accountants have sorted the business and now she’s reneged on the house (it was all verbal)
And she won’t hep in the business but obviously wants 50% of money!
Clearly if I’m doing 100% of the work now this isn’t fair so how legal is it to setup another company and start selling the equipment to that other company OR do I start the long process of buying all new equipment to avoid legality issues!
Stepmum and me agreed to 50/50 on his house and 50/50 on the business accountants have sorted the business and now she’s reneged on the house (it was all verbal)
And she won’t hep in the business but obviously wants 50% of money!
Clearly if I’m doing 100% of the work now this isn’t fair so how legal is it to setup another company and start selling the equipment to that other company OR do I start the long process of buying all new equipment to avoid legality issues!
Need more in info - is this a company, a patnership, was you Dad a sole trader ? are you an employee ?
surely his will describes how his assets including any shares he owned in the business be dealt with ?
if he died intestate then follow the usual rules
Your mum cant decide as she feels like it but in the absence of the details its hard to comment any further.
surely his will describes how his assets including any shares he owned in the business be dealt with ?
if he died intestate then follow the usual rules
Your mum cant decide as she feels like it but in the absence of the details its hard to comment any further.
Ultimately at 50/50 she’s as snookered as you are with the business. Depends who wants to play the hardest.
The best result for you would be her paying your share and then you do the same thing in a new business of your own. She isn’t going to do that though.
If it’s Ltd it will be down to what the shareholders agreement says. Which probably won’t be much helpful.
The best result for you would be her paying your share and then you do the same thing in a new business of your own. She isn’t going to do that though.
If it’s Ltd it will be down to what the shareholders agreement says. Which probably won’t be much helpful.
I don't know the scale of the business or your reliance on it but I might be tempted to say one of the following:
- Happy to split profits 50:50 but I will also take a salary and bonus out of the business on top
- Lets get a 3rd party to manage the business and we both sit there and take profits
- I'm going to set up a new business. good luck
- Happy to split profits 50:50 but I will also take a salary and bonus out of the business on top
- Lets get a 3rd party to manage the business and we both sit there and take profits
- I'm going to set up a new business. good luck
But if context
It’s a business that I’ve worked in with dad 26yrs she’s been with him 12yrs
Her name was added to his house 2yrs ago and she was down as a partner in the business with him I wasn’t, his shares of the business have been transferred to me as she can’t run it or operate it only I can!
She needs me otherwise the business collapses overnight!
He also died with no will however she’s making sure she devalues his share to cut me out!
So she said to me if I keep the business going we will be 50/50 on the house and business that way we both benefit! Now she’s reneged on her part!
If I was to setup I can either sell my company the machines at their value or I buy new machinery and put them on the sites, again I’m th only one that can do this!
It’s a partnership business but also 2 limited companies! I don’t rly understand why,
It’s a business that I’ve worked in with dad 26yrs she’s been with him 12yrs
Her name was added to his house 2yrs ago and she was down as a partner in the business with him I wasn’t, his shares of the business have been transferred to me as she can’t run it or operate it only I can!
She needs me otherwise the business collapses overnight!
He also died with no will however she’s making sure she devalues his share to cut me out!
So she said to me if I keep the business going we will be 50/50 on the house and business that way we both benefit! Now she’s reneged on her part!
If I was to setup I can either sell my company the machines at their value or I buy new machinery and put them on the sites, again I’m th only one that can do this!
It’s a partnership business but also 2 limited companies! I don’t rly understand why,
ghost83 said:
But if context
It s a business that I ve worked in with dad 26yrs she s been with him 12yrs
Her name was added to his house 2yrs ago and she was down as a partner in the business with him I wasn t, his shares of the business have been transferred to me as she can t run it or operate it only I can!
She needs me otherwise the business collapses overnight!
He also died with no will however she s making sure she devalues his share to cut me out!
So she said to me if I keep the business going we will be 50/50 on the house and business that way we both benefit! Now she s reneged on her part!
If I was to setup I can either sell my company the machines at their value or I buy new machinery and put them on the sites, again I m th only one that can do this!
It s a partnership business but also 2 limited companies! I don t rly understand why,
I'm obviously not a lawyer, so stupid question incoming....It s a business that I ve worked in with dad 26yrs she s been with him 12yrs
Her name was added to his house 2yrs ago and she was down as a partner in the business with him I wasn t, his shares of the business have been transferred to me as she can t run it or operate it only I can!
She needs me otherwise the business collapses overnight!
He also died with no will however she s making sure she devalues his share to cut me out!
So she said to me if I keep the business going we will be 50/50 on the house and business that way we both benefit! Now she s reneged on her part!
If I was to setup I can either sell my company the machines at their value or I buy new machinery and put them on the sites, again I m th only one that can do this!
It s a partnership business but also 2 limited companies! I don t rly understand why,
If they aren't married and no will is left, then how would an estate be divvied up? I'd have assumed it would go in equal parts to the deceased children if unmarried.
spookly said:
I'm obviously not a lawyer, so stupid question incoming....
If they aren't married and no will is left, then how would an estate be divvied up? I'd have assumed it would go in equal parts to the deceased children if unmarried.
If a property is jointly owned, on the death of one joint owner it automatically becomes the property of the other joint owner. I’m not aware that marriage or not affects this.If they aren't married and no will is left, then how would an estate be divvied up? I'd have assumed it would go in equal parts to the deceased children if unmarried.
martinbiz said:
Wrong
You sure about that? Explanation would be more helpful than shouting one word and running away.Joint Ownership can come in two flavours,
1) Joint tenants (the basic position) - automatic survivorship. i.e. After first death the other joint owner gets 100%.
2) Tenants in Common (which requires an additional Declaration of Trust) - each half forms part of the estate of that individual and goes in accordance with their Will or the Intestacy rules.
martinbiz said:
James P said:
If a property is jointly owned, on the death of one joint owner it automatically becomes the property of the other joint owner. I m not aware that marriage or not affects this.
WrongTwo people own it jointly, one dies leaving one owner. Against 2 tenants in common owning a proportion each that they can leave in their wills as they choose or die intestate and let the rules apply.
My dad owed the house long before she came along and wasn’t on the mortgage
He’s added her onto the house in 2023
I don’t know if intestacy applies but he did die with no will,
In regards to the business yes it puts me in a strong position but I’m seriously pissed off over the house because when I made an agreement with someone I stick to my word,
It’s rly not a nice position to be in at all, my wife thinks just set up take all the business and balls to her, stepmum is not willing to help in the business at all
He’s added her onto the house in 2023
I don’t know if intestacy applies but he did die with no will,
In regards to the business yes it puts me in a strong position but I’m seriously pissed off over the house because when I made an agreement with someone I stick to my word,
It’s rly not a nice position to be in at all, my wife thinks just set up take all the business and balls to her, stepmum is not willing to help in the business at all
Quote: "It s a partnership business but also 2 limited companies! I don t rly understand why,"
If the limited companies are dormant and their their names include the partnership trading name - it may well be a tactic to protect the trading name in general - well worth asking your Dad's Accountants
If the limited companies are dormant and their their names include the partnership trading name - it may well be a tactic to protect the trading name in general - well worth asking your Dad's Accountants
ghost83 said:
But if context
It s a business that I ve worked in with dad 26yrs she s been with him 12yrs
Her name was added to his house 2yrs ago and she was down as a partner in the business with him I wasn t, his shares of the business have been transferred to me as she can t run it or operate it only I can!
She needs me otherwise the business collapses overnight!
He also died with no will however she s making sure she devalues his share to cut me out!
So she said to me if I keep the business going we will be 50/50 on the house and business that way we both benefit! Now she s reneged on her part!
If I was to setup I can either sell my company the machines at their value or I buy new machinery and put them on the sites, again I m th only one that can do this!
It s a partnership business but also 2 limited companies! I don t rly understand why,
Stepmums and the passing of dads is something to be feared by all in that situation. The seemingly fair mind and thought process disappears as fast as you can say money. I’ve seen so many people destroyed by stepmums cutting kids out once the dad has gone even if they knew the wishes and all was clear. It s a business that I ve worked in with dad 26yrs she s been with him 12yrs
Her name was added to his house 2yrs ago and she was down as a partner in the business with him I wasn t, his shares of the business have been transferred to me as she can t run it or operate it only I can!
She needs me otherwise the business collapses overnight!
He also died with no will however she s making sure she devalues his share to cut me out!
So she said to me if I keep the business going we will be 50/50 on the house and business that way we both benefit! Now she s reneged on her part!
If I was to setup I can either sell my company the machines at their value or I buy new machinery and put them on the sites, again I m th only one that can do this!
It s a partnership business but also 2 limited companies! I don t rly understand why,
I hope you come good in the end with your “rightful” and fair share. My advice would only be to have zero trust in the person and only in written legal agreements.
OP. Were your dad and your 'stepmum' legally married? Do you have any siblings? Were you legally adopted by the 'stepmother'? Has probate been granted ? What was the value of your father's estate? You say he died without leaving a will? If so he died 'intestate' and rules come into effect.
Go through the check list here. https://www.gov.uk/inherits-someone-dies-without-w...
You say there are two limited companies, what information comes up when you check on companies house? Are you or your 'step-mother' a director?
Does your step-mother rely on the business for income? Does she have other income, pensions etc?
Go through the check list here. https://www.gov.uk/inherits-someone-dies-without-w...
You say there are two limited companies, what information comes up when you check on companies house? Are you or your 'step-mother' a director?
Does your step-mother rely on the business for income? Does she have other income, pensions etc?
Edited by megaphone on Sunday 8th February 10:09
Edited by megaphone on Sunday 8th February 10:13
Edited by megaphone on Sunday 8th February 10:40
Sorry to read that your father died - not easy for you at all.
I am not sure I have any great solutions in mind, but I am curious about the profitability of the business and the net asset value. Does it own it's own premises (for example)? Is there any debt?
Is your step-mother a director of the business?
Is there any provision in the articles of association/shareholders agreement for compulsory share transfer? Tricky with an exact 50/50, but just curious.
I am not sure I have any great solutions in mind, but I am curious about the profitability of the business and the net asset value. Does it own it's own premises (for example)? Is there any debt?
Is your step-mother a director of the business?
Is there any provision in the articles of association/shareholders agreement for compulsory share transfer? Tricky with an exact 50/50, but just curious.
Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff