If you are a sole trader, partner or major shareholder in a private company it is very important to ensure that your personal affairs are in order. Making a will can be difficult for anyone but for the owners of a family business the decision may prove even trickier.
The decision of how to divide the business between children is a difficult one and many family business owners do not make a will because they do not want to deal with the issues that may arise when considering how to divide the business. However, failing to make a will can create a serious risk to the security of your family and the business itself.
Bespoke advice is, therefore, a necessity when it comes to making a will for business owners. Important arrangements need to be made, such as ensuring shares are passed to the correct person(s) without adversely affecting the business. Company shareholders’ agreements, articles of association and/or partnership agreements should also be checked to ensure that they provide practical exit provisions so that your intended beneficiaries correctly inherit whatever company shares or part of your business you wish to leave them.
A properly drafted will can also maximise the potentially significant inheritance tax savings available from various forms of business tax relief.
For anything further, one of our specialists would be delighted to meet you either in our office or in your own home to talk through your requirements and answer any questions. Please contact us at any time.