Will Writing for Business Owners
As a business owner, it’s important to make provisions for your business after you’re gone.
Why is it important to write a will as a business owner?
After spending years investing time and money into making your business a success, you want to make sure it’s going to be run by the people you have chosen. If you decide that your heirs don’t have the skill set to run the business, you can make provisions for the shares to be allocated and sold for a fair price instead. Book a free consultation to discuss your options.
What happens to my business when I die?
If I’m a… Sole Trader
Leaving a sole trader business in your will is very straight forward. As you own all the assets, you can leave your business as part of your residuary estate to who ever you would like.
If I own a… Limited Company
The articles of association may determine how shares are dealt with on the death of a shareholder. It is important to make sure you are familiar with these, as it may not necessarily reflect what you want to happen, and it could over ride the wishes of your will.
If I’m in a… Partnership
You should have a partnership agreement in place which says what happens to your share of the business when you die. This agreement will override the wishes of your will.
How can you protect your business in a will?
Create a succession plan to express who you want to take control of the business
Consider who would genuinely want to take over the business to ensure it is still profitable
Bequeath shares to loyal employees who have contributed to the survival of your business
Prevent conflict from multiple people about the way your business should be run
How can you protect your family?
Make it known to your executors that your business is eligible for Business Property Relief, so that inheritance tax is reduced by 50% or 100%
Ensure that your spouse is taken care of in his or her surviving years
Make provisions for your children or grandchildren
Place business assets into a Will Trust to ensure that they are safeguarded from inheritance tax
How can I protect my business further?
Discretionary Trusts
Placing your business assets into a Discretionary Trust can minimize inheritance tax for your loved ones. A Trust also gives you flexibility with who you want to leave your business to, providing you with more options.
Legal Power of Attorney
A financial LPA can be the difference between your business surviving and failing. This legal document enables you to appoint somebody to make business decisions on your behalf if you lose the capacity to.
Get in touch.
To arrange a free consultation or find out more information, please enter your details and one of the team will be in touch.