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Succession and Wealth Protection Seminar - 3 December 2013 The family Michael and Yasmin Black have been married for over 40 years. They have three children, Alex, Richard and Aspen. Company Issues Michael and Yasmin established a family owned and run business called Sedgley Manufacturing Ltd (“the Company”) around 25 years ago. Michael and Yasmin have been running the business since its inception but are looking to take less of a role. The Company (which has no subsidiary) typically turns over £5 million, is profitable and has assets including the following: trading premises - valued at £750,000.00 The trading conditions are becoming more volatile and the Company is being asked to enter into increasingly onerous contracts. They are also aware that they might need to diversify over the coming years to maintain profitability. Michael and Yasmin have recently given 5% of the shares in the Company to each of their three children. Alex, the eldest child, lives and breathes the Company and is the Operations Director, reporting to Michael. Alex has ambitions to take over management of the Company if Michael and Yasmin take a back seat. Richard has worked elsewhere to date, but has now shown some interest in the Company, now he owns 5% of the shares. Aspen, the youngest of the children, has just returned from a two year gap holiday in South America. She enjoys her independence, and whilst she owns 5% of the shares, she has no day to day involvement in the Company and is looking at starting up her own business. Long term family issues Michael and Yasmin are both in their 60s and are in reasonably good health, although Michael recently had a minor accident at work which has affected his mobility. Michael and Yasmin live at Hill Top Lodge in Sedgley. Hill Top Lodge is worth £1m and there is no mortgage outstanding. They have also recently purchased a holiday home, “Sunny Villas”, in Spain worth £500,000. They used all of their savings to achieve this and have therefore avoided the need for a mortgage. Following Michael’s accident, he and Yasmin are thinking about semi-retiring to live at Sunny Villas for part of the year, but want to ensure that their “fourth baby” is left in safe hands. Individual Issues There is no concern with regards to Michael and Yasmin’s marriage. Alex’s relationship and its effect on the business, is concerning Michael and Yasmin. Alex is married to Lisa and they have two children, Ben (6) and Sam (10). Lisa left Alex in September after 15 years of marriage, and has asked for a divorce citing (as part of the reason) the amount of time he spends in the business. Richard, the middle child, does not work for the Company but is a successful estate agent. He has entrepreneurial qualities and over the years has invested his savings to fund the purchase of 10 buy-to–let properties. The equity in these (less mortgages etc) is about £500,000. Alex confided in Richard about the breakdown of his marriage and this has made Richard very cautious. Richard is engaged to Adrianna and they are planning to marry next summer. After reading about the Petrodel case, he transferred his properties into the Company as he felt that this would protect them from any future claims that Adrianna may make against him for the value in such properties. Aspen is in a relationship with Manuel, whom she met on her travels. Michael and Yasmin do not approve of Manuel and were horrified to learn that Aspen is 12 weeks pregnant with his child.

Source: http://higgs.connectdigitalllp.co.uk/media/501329/wealth%20protection%20seminar%202013.pdf?utm_source=Wealth+Protection+Seminar&utm_campaign=19740b50c2-HR_Update_Newsletter_July_20137_16_2013&utm_medium=email&utm_term=0_ce1c7fb9c8-19740b50c2-