Care funding

My clients are a small family company and its directors and shareholders. The business was established and run for a long time by Mr A but over the years his children and various nephews and nieces gradually became involved in running it.

Mr A’s shareholding has now reduced to 5% and although he occasionally attends shareholder meetings he is no longer a director and receives no remuneration or benefits from the company. However dividends are sometimes paid.

Mr A is now 80 years old and needs care – possibly in his own home and perhaps later in a nursing home. The other shareholders who have benefited from their involvement with the company and who also expect to benefit in due course from his estate have agreed that they will fund his care costs.

This could be from their taxed income but we have...