The fact that you own a business has an impact on how you should structure your Will. It is critical to consider who will inherit your shares or business interest. Making a Will allows the business to be passed on to whoever you choose. A business, like any other asset, can be transferred through the Will and distributed according to the owner’s wishes.

Although you can leave a business in your Will, you must also consider your position within the company. A sole trader, for example, is the simplest type of business because the assets used for the business are owned by the business’s owner and can thus be left as part of the estate. On the other hand, you could be a business partner who has signed a partnership agreement.

Because a partnership agreement or shareholders agreement determines what happens to your shares when you die, it is critical that the agreement you sign is properly drafted. The agreement could include provisions for the deceased shares. The partner can direct that the shares be distributed to individuals such as their spouse or children. Alternatively, if the partners so desire, an agreement can be drafted to provide for the purchase of the deceased’s shares.

When dealing with a business interest, there are also inheritance tax and other taxation issues to consider. These can be complicated issues, so it is best to consult a specialist probate solicitor when considering wealth planning.

Making a Will as well as entering into an agreement are both necessary for anyone involved in business. A professional probate solicitor can provide you with additional information about business and Will requirements.

If you would like to speak with a member of our specialist team about making a Will or estate planning for business owners, our approachable and professional experts would be delighted to talk to you about your situation, without legal jargon, and discuss what we can do to help you protect your family and business.