It is imperative for business owners to have written a Will. Although it doesn’t make for a pleasant thought, as business owners, we’re all going to have to consider the unavoidable circumstance of leaving your business at some point in your lifetime. If you don’t plan for things like retirement, passing away or passing the throne, there could be a chance you could lose all that you’ve worked for. Therefore, having a sound estate plan in place through making a Will is essential if you own a business.
Having an estate plan in place means you can be confident that your assets will be protected and spread in a way you wish. A Will helps to prevent your business assets from being allocated by a court of law and being surrounded in the doubt of whether your legacy will continue the way you want it to. Writing a Will lets you plan how you want your assets to be taken care of which is why it’s imperative that you get one drafted before you retire from your business.
When should a business owner draft a Will?
It can be difficult to know when precisely you should write your Will. It’s a good idea to have your Will in place when you attain your assets. There really isn’t any right or wrong time to have it written but having one early on when you gain your assets is ideal. Basically, it’s up to the business owner, according to their plans for the estate, to choose when they write their Will.
Passing your business down to heirs
As part of the estate planning, business owners would need to contemplate what will happen after they need to step away from the daily running of the business or if they come into an unforeseen situation where they would no longer be available to their business. As a business owner you’d need to plan who will keep the wheels in motion when it comes to it. However, there’s no assurance that the beneficiary you select would want to take over the business. This is where you need to think about a few aspects to govern who would be the right choice:
- Who sincerely wants to take on the business?
- Are there numerous candidates that it could be passed on to?
- Will there be any tax implications?
It’s not a minor decision to make, so if you’re uncertain at any point in the process, you should discuss the matter with JMR probate solicitors who can help you every step of the way.
Tax planning for business owners
When writing your Will, there will be tax guidelines that you’ll need to abide by, particularly if you plan on retiring about the same time that you write your Will. For instance, the pension lifetime allowance shouldn’t be surpassed when retiring; or else, usually you’ll end up paying more tax. The inheritance tax could also be a large load on the rest of your successors or heirs which you should be mindful of and we can advise you about. As a result, you may consider giving some of your assets as a gift throughout the lifetime of the business.
Set goals when writing your Will
Writing a Will can offer you an opportunity to think about your long-standing plan for the business. You’ll be able to provide instructions on how you imagine the company to be upheld when you eventually pass away. For example, you’ll probably want the USPs of the business to continue long after you leave to ensure the business runs well.
As a business owner, can I change my Will?
For your existing circumstances to be reflected in the Will, it’s vital that your Will is kept up to date so changes can be expected. This means you may need to make a new Will when big changes happen in your life such as a marriage or having children.
Business Owners can contact JMR Solicitors for drafting or amending your Will
If you are a business owner and want to draft a Will or want to amend an existing Will, then our probate solicitors can help you ensure that you have all matters in place.
Contact JMR Solicitors to ensure your business is protected and get a Will is in place. You can reach us on 0161 491 3933 or email