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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 9345
Experience:  I have been practising for 30 years.
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I am going to retire and hands the reins of my business over

Resolved Question:

I am going to retire and hands the reins of my business over to a colleague. My accountant has advised that we need to draw up a Heads of Agreement. This would guarantee me a pension/salary in my retirement. I know that i need a commercial lawyer to help draw this up. I have an outline from the accountant which gives the structure he has suggested. What should i expect to pay for this? Thank you, jacki
Submitted: 12 months ago.
Category: Law
Expert:  F E Smith replied 12 months ago.

This is going to be quite a specialised document and hence, it needs to be done properly and it’s not something that I would suggest that you tried to do yourself. It’s not something that we could do for you on here unfortunately because of the potential complexities.

What you need to consider is what happens if things go wrong? What happens if the business closes or is no longer profitable cannot sustain paying you?

Is there going to be any spouses payment (usually 50%). Are you going to be required to do any work at all either in the short term after retirement in the long term? Suppose you either don’t want to or are incapable.

So what you need to consider is exactly what’s going to happen when things go wrong. You don’t need an agreement when everything goes right, only when it goes wrong.

A high street solicitor would probably charge between £500 and £1000 plus VAT for drawing up the necessary retirement and ongoing payment deed. It’s unlikely you would get it for less than that because there is a lot of work involved although you may find that some solicitors may charge double that. At least you know the kind of money that you should be looking at.

Can I clarify anything for you?

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Best wishes.

FES.

F E Smith and 4 other Law Specialists are ready to help you
Customer: replied 12 months ago.
Thank you. I will rate you now but may come back with a further questions. best jacki