How To Include A Business In A Will

When it comes to drafting a will, it is very important to include what your intentions are for your business when you die. Whether you are a small one man band operation and have only just begun your venture or you’re close to retiring and have created a large and successful operation employing many people, the fate of your business in the event of your death can be worrying. In this article, how to include a business in your will, we take a look at the options open to you.

Free Initial Telephone Discussion

For a free initial discussion on how we can help you draft your will to ensure your business is included, get in touch with us today. We will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure your final wishes are accurately recorded and also avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or complete our online enquiry form and a member of the team will get back to you.

What is the structure of your business?

Businesses come in a variety of shapes and sizes. The structure of your business will determine the implications for leaving it in your will.

Sole trader businesses are the simplest to deal with when writing a will, as any assets used for business purposes are owned by you. You can leave this type of business as part of your estate when you die and it can then be shared between your beneficiaries in any way you see fit.

All limited companies in the UK should have both a memorandum and articles of association. These specify the purpose of the company and how it should be run. The articles of association may also say what should happen to your share of the business when you die, so it’s important to read these documents when you start writing a will. It is important to note that these instructions in the company articles will usually override those left in your will. If the articles of association don’t prescribe what happens when you die, you can specify your intentions for the business in your will.

In a Limited Liability Partnership, there should be an LLP agreement or LLP members’ agreement. This is designed to make sure the LLP can carry on if one of its members dies. If you’re a member of an LLP, it would be prudent to familiarise yourself with the terms of your agreement before you start writing a will.

In a Partnership, there should be a partnership agreement. This will set out what happens to your share of the business when you die and it will override anything written in your will. If you didn’t create a partnership agreement and there isn’t one in place at the date of your death, the partnership can be forced to cease trading when a partner dies.

Leaving your business as a gift

If you’re a sole trader or the sole director of a limited company, you may be able to leave your business as a gift to a specific beneficiary. This could be a good option if you have a succession plan and want your business to continue trading after you die.

Remember, you must give some thought as to who you actually want to leave your business to. It may not be as obvious as you think.

There are many tax implications and ways to mitigate this when leaving your business in a will so it is important to speak to a solicitor well versed in this area of law with access to corporate legal services and also expert tax advice.

We can also advise on alternatives to exiting your business whilst you are still alive for the benefit of both yourself and also the proposed beneficiaries of your will.

How we can help

We have a proven track record of helping clients draft their wills that includes their business. This includes relatively straightforward estates and also complex estates where assets are held all over the world where you might additionally need access to corporate solicitors. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.

How to Contact our Wills and Probate Solicitors

It is important for you to be well informed about the issues and possible implications of adding your business and its assets to your will. However, expert legal support is crucial in terms of ensuring your final wishes are met as you would want them to be.

To speak to our Wills and Probate solicitors today, simply call us on 0345 901 0445, or allow a member of the team to get back to you by filling in our online enquiry form. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.

Authored by Ben Posted in News, Private Client Tagged as