The Importance of Having a Will as A Business Owner

Writing a will is probably something that we do not have on our agendas until we reach a much older age, but as the world works in mysterious ways, it’s often the case that people can die suddenly because of freak accidents or illnesses, which is why preparation for these instances can be useful. Planning for the inevitable is smart, but planning in case of an emergency can be quite daunting, so why do people do it? If you have responsibilities, if you’re a homeowner, or if you are a business owner, then you have assets that need to be taken care of.

Owning a business is not like owning jewellery, or a house or a car, If you’re a business owner and you do not have a will drawn up, the you could find that your assets are not divided up between your loved ones and your business could even be sold or dissolved after your death. So drawing up a will is worth considering, even if it only to ensure that your family are well looked after after your death.

Protect your family:

In some scenarios, families have to sell their homes in order to pay for the business rates, which is an extremely daunting and unsettling thought. This can be even further complicated if you have a business and also business assets. A recent study has revealed that as many as 1 in 10 business owners believe that they would have to stop trading if one of the key individuals in the business passed away.

This has a knock on effect that can change the lives of every single employee, your employee’s family members and so on. There needs to be a contingency plan put into place in the event of a death, so that the worst case scenario doesn’t become a reality. If you are in a position where you have built an owner-dependent business, then you need to plan ahead for the future to protect everybody who is involved in the process.

Avoid Conflict:

Running and owning a family business can be tricky, and can result in lengthy law suits after the owner has died. In some cases, assets will be equally divided, and in others, it will be decided in court. These decisions do not necessarily benefit every family member and can lead to internal family disputes or a loss on income resources.

Will disputes can be messy affairs, so it’s important to ensure that everybody is being cared for and compensated fairly in the event of your death. Speaking with trust solicitors will help to give you a clearer understanding of your options, and placing your business in a trust could help your children, and family members in the future. This way, even if the business continues in the management of somebody who works outside the family, your children will have the resources to look after themselves. This will also mean that your children will not be subjected to an inheritance tax.

Reduce the tax burden:

By placing your company into a trust, instead of passing it along to a partner, will help your family to continue to reap the benefits of your business long after your death without being subjected to inheritance tax. This means that your children and grandchildren will have a larger trust fund savings account in the future. If you are unsure about the will writing process, or anything thereafter, then it’s necessary to speak to a probate solicitors, as this will help to give you better clarity on the matter.

Drawing up a will will ensure that your business is protected in the event of your death, and it also means that your family will be protected throughout the process and will prevent them from experiencing turmoil or any further emotional torment.

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