WILLS AND ESTATE PLANNING FOR BUSINESS OWNERS
What’s a Business Owner’s will?
A Business Owner’s will is used to give instructions as to what is to happen to your assets and finances, both personal and business, after death.
What happens if you die as a
Business Owner without a will?
As a Business Owner you are leaving everything you have probably sweat blood and tears to build to chance. You will die ‘Intestate’ which means you are leaving it to the intestacy rules which have been in place for many years, to distribute your business and personal assets!
Why is it important for Business Owners to make a will?
There are some very important reasons as to why you should make a will as a Business Owner. For example, you need to appoint the right executors, trustees or guardians to make sure the right people inherit your estate, under the right circumstances and to look after your loved ones.
However, as a Business Owner, there are many important reasons why you need to include a business statement in your will:
- You might want to appoint different people to administer your business assets to those for your personal estate.
- For some businesses, the business may need to cease trading upon your death. As this could cause a massive impact on the value of the business, and on the lives of your family and employees, so you need to get professional advice to take care to avoid these issues.
- For inheritance tax efficiency. By using an estate planning practitioner , you can ensure the maximum value of your estate is received by your loved ones.
If you’re a Business Owner, ask yourself this one question:
What happens to your business in the event of your death?
Does it die with you?
Most people set up a business to create the lifestyle that they want for themselves and their family, but seldom think about or plan what happens to the business once they’re not around anymore.
If you’re a sole trader, then without a Will in place, your business will die with you. When making your plans to grow the business, ensure you make plans for how you want the business passed on.
If you’re a partnership, is your partner willing to do 100% of the work instead of the 50% for the same financial reward? Make a Will to ensure you both know what will happen if either of you ends up running the business yourself.
A limited company can bring a new set of challenges if there is no Will in place.
- How is it set up?
- How are the shares going to be distributed?
- Do you need insurance to be able to buy out the spouse of the deceased shareholder?
- What effect does it have on the company by one of the shareholders not being there?
Question the outcome! Make sure things are in place now, to secure the future of your family, and your business!
Not only make your Will but ensure you have thought about your Estate Planning and Lasting Powers of Attorney!