Father wants struggling business in son's name

samxd

I'm unsure if I'm posting this in the right place but maybe someone can help me out.
Basically my boyfriend's father has asked him to put their struggling family business in his name. My boyfriend obviously feels burdened by this but still seems naively willing. He is a college studet in his early twenties. I would hate for him to make an ignorant decision which results in him being buried in debt before he even has a chance to start his own life.
So that brings me here. Neither of us are financially aware and I need help in compiling some reasons that will make him reconsider and realise what he might be getting himself into.

jimmii

If he not financially aware and has little knowledge of the business and seems to have no real interest in taking it on then that would be a good indicator its not a great idea. Do you think he's just doing it as an inheritance or do you believe he has other reasons for wanting to do it?

L.Jenkins

samxd wrote: »

Basically my boyfriend's father has asked him to put their struggling family business in his name. My boyfriend obviously feels burdened by this but still seems naively willing. He is a college studet in his early twenties. I would hate for him to make an ignorant decision which results in him being buried in debt before he even has a chance to start his own life.
So that brings me here. Neither of us are financially aware and I need help in compiling some reasons that will make him reconsider and realise what he might be getting himself into.

If the same were asked of me, in short, I would say no. It seems a little irresponsible of your boyfriends' father to even ask if the business is struggling, lunacy even.

Do you mind me asking is the business an LTD or is his father a Sole Trader?

beauf

Would it be a means to avoid the limitations of bankruptcy?

Mrs OBumble

How much tax does the business owe? What other liabilities does it have? Your bf could suddently find himself personally liable for these debts .. even worse if employees PRSI contributions have not been being paid.

He needs independent financial advice.

Voltex

I saw this done once...it ended very badly with a very naive daughter who thought she was helping her Dad, landed with huge debt and countless threatening letters.

samxd

jimmii wrote: »

If he not financially aware and has little knowledge of the business and seems to have no real interest in taking it on then that would be a good indicator its not a great idea. Do you think he's just doing it as an inheritance or do you believe he has other reasons for wanting to do it?

Guilt I suppose.
The business is currently in his mother's name but they are seperating. (I don't quite know the reason that it's not in my bf's father's name but it sounds messy.)

samxd

L.Jenkins wrote: »

If the same were asked of me, in short, I would say no. It seems a little irresponsible of your boyfriends' father to even ask if the business is struggling, lunacy even.

Do you mind me asking is the business an LTD or is his father a Sole Trader?

My thoughts exactly. It is LTD.

samxd

beauf wrote: »

Would it be a means to avoid the limitations of bankruptcy?

I'm not aware of the circumstances and worryingly, neither is my bf.

samxd

Mrs OBumble wrote: »

How much tax does the business owe? What other liabilities does it have? Your bf could suddently find himself personally liable for these debts .. even worse if employees PRSI contributions have not been being paid.

He needs independent financial advice.

This is why I'm worried.
There was some problems last year with unpaid taxes in the hundreds of thousands. My bf's father was very close to going to court over it and even facing prison time. Suddenly, it all blew over and I have no idea how.

Heres Johnny

He needs to get advice, independent of the father. He will need to get his own financial and legal advice from someone acting on his behalf, not on behalf of the family where there may be a conflict of interest in advice given.

But under no circumstances just do it at the fathers behest.