BUSINESS ESTATE PLANNING SERVICES
Cross Option Agreements
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If you or a business partner dies their share will pass to their spouse or beneficiaries through their Will. This is now deemed to be part of their estate.
Whilst this share is held, and the business continues trading then the assets could be exempt from Inheritance Tax if they qualify for Business Property Relief (BPR).
Once the Cross Option Agreement has been executed and then BPR is no longer available on the proceeds i.e. from any life assurance payouts. The spouse’s assets are assessable for Inheritance Tax (IHT) and have now increased by the funds received from the life assurance policy, risking 40% of the proceeds to IHT.
Depending on the size of the business this could be a significant loss. These assets are also now at risk from attack from any future remarriage claims, creditors or bankruptcy and Long-Term Care costs.
“Whilst Cross Option Agreements ensure that the surviving business partner(s) has the right to buy out the deceased’s share of the business and the family to sell, the taxation consequences on both sides will be exacerbated.”
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What Our Clients Say About Us
Clelia G
1 year ago
I contacted Michael Doctors having searched for specialist Estate Planners in my area and found the Michaels & Co website. He offered us a free in depth review of our existing Wills, circumstances and concerns. We work in Budleigh Salterton and Michael was very accommodating as far as when and where consultations can take place. As well as a free initial consultation, we were able to request online, a free estate planning guide which discussed the various Trust & Estate Planning options available. Michael clearly is very knowledgeable in all aspects of Wills, Trusts & Lasting Powers of Attorney and comes across as someone who truly cares.
Response from the owner
Dear Clelia, thank you so much for your thoughtful review. It was a pleasure meeting with you and discussing your estate planning needs. I'm glad you found the initial consultation and planning guide helpful, and I truly appreciate your kind words about my approach and knowledge. If you ever have any further questions or need support in the future, please don’t hesitate to get in touch.I look forward to seeing you soonBest wishes,Michael1 year ago
Nicola Wilson
1 year ago
Michael Doctors has a natural ability to grasp complex personal circumstances and responds with clarity, professionalism, and warmth. He creates a calm, unhurried space to talk through sensitive topics and offers a free initial online consultation.
His website provides clear, educational resources that reflect his thoughtful approach — including a downloadable guide that explains the importance of Wills, Lasting Powers of Attorney, and establishing Trusts.
It’s clear he genuinely cares about getting things right for the people he works with, and he’s willing to travel extensively to spend time with clients in person.
His website provides clear, educational resources that reflect his thoughtful approach — including a downloadable guide that explains the importance of Wills, Lasting Powers of Attorney, and establishing Trusts.
It’s clear he genuinely cares about getting things right for the people he works with, and he’s willing to travel extensively to spend time with clients in person.
Response from the owner
Dear Nicola, thank you for your thoughtful and generous review. I'm truly grateful for your kind words. It means a great deal to know that you felt supported and at ease when discussing such important and often sensitive matters. I always aim to provide a clear and reassuring approach, and I’m glad to hear that came across during our conversations.It’s also good to hear that you found the website resources helpful — I believe informed decisions come from clear guidance, and I’m pleased they reflected that intention.Thank you again for taking the time to share your experience. It’s a privilege to work with clients like yourself, and I remain committed to providing care, clarity, and support wherever it’s needed.Best wishesMichael Doctors1 year ago
Tyra Kellett
1 year ago
I contacted Michael Doctors for a free initial consultation via the contact form on his website. I didn’t at any point feel obligated to use Michael Doctors services and this is a genuine offer for an in depth review of our circumstances and concerns. We are based in Budleigh Salterton and have a young family and a busy work life, running the popular Brook Kitchen Art Café & Restaurant. Along with the free initial consultation we received a free estate planning guide which we are finding tremendously helpful in making decisions about our estate planning. We would definitely recommend making contact for a discussion concerning all aspects of Wills Trusts & lasting Powers of Attorney. Michael Doctors really does know his stuff and we never felt that he was watching the clock!
Response from the owner
Hello Tyra,Thank you for your review. It was a pleasure speaking with you and I am delighted you found our discussion relaxed, whist comprehensive and addressing all your concerns.Best wishes,Michael1 year ago
Andy Lewis
2 years ago
Michael provided estate planning advice for me. Michael Doctors is an incredibly patient and professional advisor, who carefully explains intricate elements of financial services in an engaging way. Being based in East Devon, having a local financial specialist has been reassuring and I’d definitely recommend him.
Response from the owner
Thank you for your review Andy, all feedback is greatly appreciated. The lines between Estate Planning and Financial Planning can often be blurred and I take great pride in demystifying this area of advice for clients. Working hand in hand with chartered financial planners whilst establishing Trust structures is essential for any robust Estate Planning strategy and I look forward to working further with you on this.2 years ago
Jane McGregor
2 years ago
Michael came up with some very important points to consider for my will which had not been suggested by a solicitor for my previous will. He also introduced me to the concept of trusts and helped me understand how I can make things easier for my children to manage my estate when I die, or if I become unable to make decisions myself.
Michael offers excellent customer service and was extremely patient with my endless questions.
Michael offers excellent customer service and was extremely patient with my endless questions.
Response from the owner
Dear JaneThank you for taking the time to share your feedback about your experience with our estate planning services. I'm grateful that you found the consultation helpful, particularly regarding the trust options.Identifying important Estate Planning considerations which hadn't been previously addressed by solicitors is a complex and personal matter, and it's crucial to explore all available options to ensure your wishes are carried out effectively while making things manageable for your children Your questions were never "endless" – they were all important and helped us create the most appropriate plan for your specific situation. I believe that thorough understanding is essential when making such significant decisions about your families future.Please don't hesitate to phone me if you have any additional questions.Best regards,Michael2 years ago
Derek Burgess
2 years ago
My wife and I used Michael Doctors to revise our wills, set up Powers of Attorney and also Trusts. Michael gave us good advice and set up everything according to our wishes. He was very thorough and answered all of our questions to our complete satisfaction. We both recommend him.
Response from the owner
Dear Derek & Margaret Thank you for your thoughtful review and recommendation. I'm delighted that I could assist you and you both with your estate planning objectives. Creating well-structured wills, powers of attorney, and trusts is essential for protecting your family's future, and I appreciate the trust you placed in me for these important decisions.Your satisfaction with our services and my ability to address your questions thoroughly means a great deal. I strive to ensure each client receives personalised attention and clear guidance through the estate planning process.Should you need any assistance in the future, please don't hesitate to phone me.Best regards,Michael Doctors2 years ago
michelle westcott
3 years ago
what did you like best
Michael Doctors of Michaels & Company, advised us about Wills, Family Protection Trusts & Lasting Powers of Attorney. We were very concerned to keep control of these affairs within our family and wanted to ensure that our estate remained within our family.
Michael provided initial consultation by video call and followed up with a personal face to face visit at our home. At no time did we feel rushed or pressurised. All our questions were answered and after we instructed him to set everything up for us he provided up dates and arranged a further visit to ensure our documents were signed correctly.
What would you tell your friends or colleagues about me?
Michael was not at all pushy as we found with other companies providing this service. He provided clear explanations in plain English which we could understand. We have already recommended him to our neighbour.
Micheal is a well presented down to earth gentleman ,thoroughly knowledgeable in this field highly recommend to anyone looking into this .
Thank you Micheal
Michael Doctors of Michaels & Company, advised us about Wills, Family Protection Trusts & Lasting Powers of Attorney. We were very concerned to keep control of these affairs within our family and wanted to ensure that our estate remained within our family.
Michael provided initial consultation by video call and followed up with a personal face to face visit at our home. At no time did we feel rushed or pressurised. All our questions were answered and after we instructed him to set everything up for us he provided up dates and arranged a further visit to ensure our documents were signed correctly.
What would you tell your friends or colleagues about me?
Michael was not at all pushy as we found with other companies providing this service. He provided clear explanations in plain English which we could understand. We have already recommended him to our neighbour.
Micheal is a well presented down to earth gentleman ,thoroughly knowledgeable in this field highly recommend to anyone looking into this .
Thank you Micheal
Response from the owner
Dear Michelle,Thank you for your kind review, it's very much appreciated. I take a great pride in my work and conducting myself 'the right way'. This area of law is such sensitive issue for all clients no matter the age, gender, ethnicity or walk of life and Estate Planning is a journey and often one which clients found difficult to address. As such I find patient approach is the only way and I'm delighted to have helped you achieve your objectives.Please stay in touch, especially where there are and changes in your circumstances, which may give rise to needing updates to your legal documents.Best wishesMichael Doctors3 years ago
diane shelton
4 years ago
Michael was very professional and knowledgable in addition to being a very pleasant person.
To discuss such a complex and potentially distressing subject he was a pleasure to have in our home
I would recommend his services to anyone.
To discuss such a complex and potentially distressing subject he was a pleasure to have in our home
I would recommend his services to anyone.
Response from the owner
Thank you Diane & Angus.Likewise, you were a pleasure to work with. Please let me know if there are any significant changes whereby you feel you may need a review of your Family Protection Trusts and Estate Planning.Best wishesMichael4 years ago
Mrs China
4 years ago
Michael Doctors of Michaels & Co provided advice on Estate Planning, Wills and Family Protection Trusts and all conducted in the comfort and privacy of our own home.
The Planning was tailored precisely to our circumstances and at a competitive price considering Michael came to us for both the initial consultation and he personally supervised the attestation of our engrossed documents.
Michael provides a range of Legal Services specialising in Estate Planning and has the experience and qualifications which provided us with the confidence in dealing with both him and his team.
Everything was carefully explained and options given. Communication was always reliable and Micheal himself was very personable.
The Planning was tailored precisely to our circumstances and at a competitive price considering Michael came to us for both the initial consultation and he personally supervised the attestation of our engrossed documents.
Michael provides a range of Legal Services specialising in Estate Planning and has the experience and qualifications which provided us with the confidence in dealing with both him and his team.
Everything was carefully explained and options given. Communication was always reliable and Micheal himself was very personable.
Response from the owner
Dear Lucy, thank you for your review and feedback, it was a pleasure seeing your parents and you again and should you have any questions relating to the Family Protection Trust in the months and years to come please phone me directly. With very best wishes, Michael.4 years ago
Sarah Cummins
4 years ago
We were originally introduced to Michael Doctors during Covid lockdown and he provided a video call consultation.
He spent time understanding our complex family situation and he was able to confidently provide in-depth explanation of products including Wills, Family Protection Trust and Lasting powers of attorney.
Michael was able to provide complex family bloodline protection advice which he was able to explain in terms that was easy to understand.
We had spent over 20 years deliberating this matter and his personal tailored service was a breath of fresh air.
Michael was very attentive and demonstrated great professionalism and patience during the process and we felt throughout that we were in very safe hands.
We would have no hesitation in recommending Michael Doctors to friends and family.
Sarah and Andy – Burgess Hill, West Sussex
He spent time understanding our complex family situation and he was able to confidently provide in-depth explanation of products including Wills, Family Protection Trust and Lasting powers of attorney.
Michael was able to provide complex family bloodline protection advice which he was able to explain in terms that was easy to understand.
We had spent over 20 years deliberating this matter and his personal tailored service was a breath of fresh air.
Michael was very attentive and demonstrated great professionalism and patience during the process and we felt throughout that we were in very safe hands.
We would have no hesitation in recommending Michael Doctors to friends and family.
Sarah and Andy – Burgess Hill, West Sussex
Response from the owner
Dear Sarah and Andy, thank you for instructing me in the matter of your Estate & Succession Planning. I’m delighted you are pleased with the service, which is of course ongoing. As such, should there be any significant changes in family circumstances as a result of which we may need to revisit the planning, please let me know. Best wishes, Michael.4 years ago
Our Personal Estate Planning Services
Will Writing, Family Protection Trusts, Lasting Powers of Attorney, Care Fee Planning, Probate, Trust Taxation, Deed of Variation, Disability Trusts
Our Business Estate Planning Services
Protecting Business Assets, Cross Option Agreements, Shareholder Trusts
FAQs – Cross Option Agreements
What exactly is a Cross Option Agreement?
Sometimes referred to as ‘Put and Call’ agreements, a ‘call option’ allows the holder the right to buy shares and a ’put option’ allows the holder the right to sell shares.
How would a Cross Option Agreement help in the eventuality of the death of a business partner/director?
This would ensure that the surviving business partner/s has the right to buy out the deceased’s share of the business. The proceeds of any life assurance policy could be paid to the surviving spouse or beneficiaries, in exchange for their inherited share of the business. Equally, the surviving spouse or beneficiaries would be able to exercise their right to sell this share of the business to the remaining business partner/s in exchange for either the market value or an agreed amount covered by a life assurance policy.
What are the consequences of a standard Cross Option Agreement to the surviving business partner?
With a standard Cross Option Agreement, the surviving partner now owns 100% of the company. This is fine whilst the business is still trading and Business Property Relief (BPR) is still applicable. However, when they want to sell, BPR will be lost and the value of the survivor’s estate for Inheritance Tax has increased and subject to other 3rd party attacks.
What would happen when the surviving spouse decides to sell their share of the business?
Now their personal estate will be increased to include the proceeds from the sale. This leaves the spouse wide open to attack from Inheritance tax, creditors/bankruptcy, remarriage and subsequent divorce settlements and long-term care costs.
“I had consulted extensively with a number of solicitors and accountants in relation to Estate & Inheritance Tax Planning, none of whom were able to provide satisfactory answers. However, we have found in Michael Doctors and his team of qualified experts, a knowledge, experience & service of the highest calibre. We will not hesitate to recommend them.”
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