Wills for Business Owners

A Will tailored to your business circumstances ensures:

⁃ Clear instructions on who should inherit or take control of the business.

⁃ The right executors are appointed for your business as well as your personal estate. It may be appropriate to appoint different people for each role with the correct experience and skills.

⁃ Succession planning for long-term stability.

⁃ Your will is consistent with your shareholder or partnership agreements.

⁃ Opportunities to use Business Relief to reduce Inheritance Tax are considered.

Yes. A sole trader business isn’t a separate legal entity, so when you die the business ends. However, the assets (such as stock, equipment, goodwill, or client lists) can be left in your Will and passed to beneficiaries. Any debts will also form part of your estate and must be dealt with by your executors.

It depends on your Partnership Agreement.

⁃ Some agreements give surviving partners the right to buy your share before it passes elsewhere.

⁃ Without an agreement, your share usually passes under your Will. Your executors may then sell or transfer it, and the proceeds are distributed according to your Will.

Making sure your Will works alongside your Partnership Agreement is vital to avoid disputes.

If you own shares in a limited company, the company’s Articles of Association or any Shareholders’ Agreement may restrict who can inherit them. Often, surviving shareholders have the right to buy shares before anyone else.

Your Will needs to reflect these rules and clearly set out who you want to benefit.

Yes, in some cases. Many business assets qualify for Business Relief (also known as Business Property Relief), which can give relief of up to 100% on Business assets.

The rules are complex and are also changing, so specialist advice is essential.

Yes — it’s essential to review your Will if you’re going through a divorce or separation. While divorce does not automatically revoke your Will, any appointments or gifts to your former spouse or civil partner may no longer take effect once the divorce is finalised.  For separating couples – not in a marriage or civil partnership – the separation will not prevent a gift in a will to that person from taking effect.

For business owners, divorce or separation can cause unintended consequences. If your Will leaves shares or business assets to your former spouse or partner and you do not update it, there could be uncertainty over what happens to those interests. Likewise, failing to update your executors or beneficiaries may leave your business exposed or your wishes unclear.

At Cullimore Dutton our specialist solicitors work closely with our family team to ensure that the advice is tailored to your individual needs.

It’s not just about planning for death. If you are temporarily or permanently unable to manage your business during your lifetime because of illness or accident, who will pay staff, sign contracts, or keep the business running?

A Business Lasting Power of Attorney (LPA) lets you appoint someone you trust to step in and manage business affairs. Without one, your family or colleagues may face a costly and time-consuming court process.