The Questions That Nobody Warns You About After You’ve Sold Your Business

You’ve spent years building something meaningful. Long hours, tough decisions, calculated risks – and it’s paid off. Your business has been sold, or you’ve successfully passed it on. The hard work is done.

But now comes the part that nobody really prepares you for.

The Questions Nobody Warns You About

Here’s what often happens after a successful exit. You’re having a quiet coffee one morning, perhaps looking at your bank balance, and suddenly you’re thinking about things you’ve never really had time to consider before.

What do I actually do with all this money? Not just invest it — but invest it properly, for the long term, for the family.

And then the trickier questions start to creep in:

• How do I share this with my children without taking away their motivation? You don’t want to be the person who unintentionally removes their drive with a cheque they didn’t earn.

• What about inheritance tax? You’ve paid tax your whole working life. The thought of another 40% going to HMRC when you die doesn’t sit well.

• How do I make sure this lasts beyond me? You’ve built something valuable — you’d like it to *mean* something for your grandchildren too.

These aren’t questions Google can answer at 2am when you can’t sleep. They’re personal. They’re about your family. And they matter.

One Option: The Family Investment Company

There’s a structure called a Family Investment Company, or FIC for short. It might sound corporate and complicated, but it’s actually quite straightforward once you understand the principles.

In simple terms, you set up a private limited company. Your family become shareholders — you, your partner, your children, perhaps even grandchildren. The company holds your wealth: cash, investments, or the proceeds from selling your business. And you set the rules.

Different family members can have different classes of shares. You might retain the voting shares, keeping control over decisions. Your children might hold shares that benefit from growth without having control. It’s flexible and designed around what makes sense for your family.

Think of it as creating a well-structured container for family wealth — one that you design, manage, and can pass on in a thoughtful, controlled way.

Why People Like This Approach

You Stay in Control

Unlike a trust, where control passes to trustees, a FIC allows you to stay in the driving seat. You decide how the money is invested, when (or if) to pay dividends, and how the structure operates. It’s your rules, built in from the start.

The Tax Position Can Work in Your Favour

Tax is rarely simple, but here’s the general idea: companies pay corporation tax on investment income, which can be lower than personal rates. Dividends can often be distributed tax-efficiently. And here’s the clever bit — you can transfer future growth to your children now, potentially reducing your inheritance tax exposure while keeping control yourself.

Does it work for everyone? Not always. Does it need proper advice? Definitely. But for many families, the numbers and flexibility make it worth exploring.

It’s About Teaching, Not Just Transferring

This may be the most valuable aspect. Rather than leaving money in a will, you involve your family now.

You can hold informal shareholder meetings — maybe even around the kitchen table — to discuss how the company is run, what’s being invested, and why. It’s an opportunity to pass on your thinking, not just your wealth.

That kind of financial education is priceless. Because the real risk isn’t in giving money away — it’s in giving it to people who don’t know how to use it wisely.

It Helps Protect What You’ve Built

Life happens. Relationships change. Businesses falter. People make mistakes.

Holding wealth within a company adds a layer of protection. If one family member experiences a divorce or financial difficulty, the family assets remain safeguarded.

And because it’s a company, it can continue long after you’re gone — creating something enduring that reflects your values and supports your family for generations.

Is It Right for Your Family?

Honest answer? It depends.

A FIC can work well when you have significant wealth to manage — usually several hundred thousand pounds or more — and you want to retain control while involving your family. It’s also useful when tax planning and legacy are key considerations, and you’re comfortable with the administration and costs involved.

But it’s not a one-size-fits-all solution. And it’s certainly not something to set up and forget about.

The Bigger Picture

When it comes to life after business, wealth alone isn’t the plan — it’s the tool that helps you live the life you want and support the people you love.

That means thinking about:

• What you and your partner need to live the life you’ve worked for
• What you actually want to achieve by passing wealth on
• How your family works — the relationships, dynamics, and potential complexities
• How pensions, investments, and property all fit together

A FIC might form part of that plan. Or it might be trusts or another structure entirely. What matters is that someone helps you see the full picture — ensuring every element of your financial life works in harmony.

That’s the kind of planning we focus on at Chesterton House. We help you bring everything together — your goals, your finances, your family — so your entire financial house is in order, giving you clarity and confidence about the future.

Thinking about your family’s financial future?

Let’s talk about what matters to you and explore how we can help bring everything into alignment. Get in touch to arrange a conversation with one of our qualified Financial Planners.

 

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Frequently Asked Questions

When it comes to managing wealth after selling a business, many people want to understand how a Family Investment Company (FIC) fits into their family wealth planning. Below are some of the most common questions people ask about using a FIC for passing on wealth, inheritance tax planning, and protecting assets across generations.

What is the purpose of a Family Investment Company?

A Family Investment Company (FIC) is designed to hold and manage family wealth within a company structure. It allows you to keep control over how assets are invested and distributed, while involving your family as shareholders and helping to pass wealth on tax-efficiently.

Is a Family Investment Company better than a trust?

They serve different purposes. A trust is typically run by trustees and offers strong asset protection, but you lose some control. A FIC, on the other hand, lets you retain decision-making power while still planning for inheritance and long-term family wealth. The right option depends on your goals and personal circumstances.

Who should consider setting up a Family Investment Company?

A FIC can be suitable for individuals or families with significant assets — often from selling a business, property, or investments — who want to retain control, manage tax efficiently, and pass wealth to the next generation in a structured way.

How is a Family Investment Company taxed in the UK?

FICs pay corporation tax on investment income and gains, which is often lower than personal tax rates. Dividends can also be distributed to shareholders in a tax-efficient manner. However, professional advice is essential to make sure it’s structured correctly for your situation.

Can my children be shareholders in a Family Investment Company?

Yes. Family members can hold shares in different classes, allowing you to control voting rights while they benefit from growth. This makes it a practical way to involve younger generations and teach them about financial responsibility.

Does a Family Investment Company reduce inheritance tax?

A FIC can help reduce the inheritance tax liability on your estate by allowing future growth in value to sit outside your personal ownership. However, it doesn’t eliminate inheritance tax entirely — it works best as part of a wider estate and inheritance tax planning strategy.

What are the risks of using a Family Investment Company?

As with any financial structure, there are costs, legal responsibilities, and ongoing administration to manage. It also needs careful planning to ensure it aligns with your wider goals and family dynamics. Getting professional advice from a financial planner and accountant is essential.

How do I set up a Family Investment Company?

Setting up a FIC involves forming a private limited company, creating the right share structure, and transferring assets into it. The process should be tailored to your family’s circumstances and long-term aims, with coordinated advice from your financial planner, accountant, and solicitor.