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 end 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.