What should I consider when writing a Business Owner Will?
Writing a Business Will requires special consideration. It can be a complex task compared to writing a personal will, and should be handled by legal specialists.
If you are trying to plan for the future and you are a business owner or partner, you will need to make sure that the company’s articles of association, partnership agreement, or shareholders’ agreement do not conflict with your wishes as described in your will. You may need to amend these documents ahead of drafting a will, or adjust the instructions in your will to ensure there are no contradictions, as these will become a complex obstacle for the executors of your will in the future. You may also wish to create a trust to manage the succession of ownership, shares, and assets, as this can ensure the safe transfer to your loved ones especially when minors and children are involved.
Could the business continue to operate without you?
Sole traders are generally not able to pass on their business, as it is tied to their name. However, whether the business could reasonably continue trading without your involvement should be a consideration if you are a business owner or partner in other types of companies too. If you wish for your business to continue without you, it is crucial to make sure it gets passed on to someone with both the interest and skills required to run it.
Who will run the business in the time between your death and its sale?
Selling a business can become a long process. You should account for what will happen to the business between the executors obtaining ownership and the final sale of the business, as this period of time could be crucial in the evaluation of the business.
Can the business be sold so that your family benefits from its sale?
You may decide that the best course of action to protect the interests of your family and loved ones is to sell the business and pass on the sale proceeds. It is important in this case to ensure the amount of tax paid is minimised and the sale of the business is handled correctly. By talking to our expert Business Will Solicitors, you can be sure that your family members will get the most benefit out of the sale of your business.
Will I pay Inheritance Tax if I pass my business on?
Estates which are valued over the £325,000 Inheritance Tax Allowance will be liable to pay Inheritance Tax (IHT). This may seem like a high threshold; however it is often exceeded by small businesses, companies and sole traders once all assets are accounted for. You may also need to pay other taxes, such as Capital Gains Tax, Stamp Duty, and others depending on the nature of the business.
One of the most common ways to reduce losses during the succession planning is to create a trust for your business or shares of a business, which will ensure minimal tax implications and could be a safer option to pass your business and assets on.
Your business estate may be eligible for tax reliefs, sometimes up to 100%. Our Inheritance Tax Planning Solicitors have years of experience, and work hard to ensure business owners protect their interests and pass on their business and assets in a tax-efficient manner.
Contact our Will Writing for Business Owners Solicitors
Planning for the future of your business is crucial, even in the unpleasant prospect of your passing. Our specialist law firm of Solicitors in Cheshire has the compassion, knowledge, and experience to guide you through the process of writing a will as a business owner. How your business is run and taken care of after you will no longer be involved should be a priority for business owners trying to build a strong enterprise.
By choosing Rowlinsons as your Estate Planning Solicitors as a business owner, you can be sure that you have experienced legal professionals by your side, who are looking out for the interests of you, your loved ones, and your business.
Our team acts for clients across England and Wales from their offices in Runcorn (Sutton Weaver) and Frodsham, helping business owners planning their estate in areas such as Warrington, Widnes, St Helens, Chester, and Northwich.
If you are a business owner looking to plan your estate distribution after your death, contact us today for expert legal advice for drafting and enforcing a business owner’s will.
Call us today for an initial no obligation call or click here for a call back. We also have meeting facilities in North Wales for Family Law clients.
