Business wills – what are they?
All adults need a will – everyone knows that. But business wills are actually needed by all business owners.
Business wills sets out who will inherit your share of the business on your death, as well as who will operate the business when you are no longer here to do so.
Failure to put in place a business will can create instability and lead to significant problems that could directly affect the continued success and value of your business.
Protecting everything that you have worked so hard to achieve during your working life is essential, yet it is something that so many owners don’t realise they need to do.
Your family and business can be protected by putting in place the following things:
- A cross option agreement – This is an agreement that is entered into by all shareholders of private limited companies. It grants surviving shareholders an option to buy back the shares of a deceased shareholder.
- Appropriate life insurance
- A professionally drafted business will
Putting these things in place will ensure your business can continue to flourish and be operated by people of your choosing. It will also ensure cash value is created for your family and potentially savings made on inheritance tax.
Talking about your plans and wishes with business partners might feel awkward, but these conversations are well worth having, especially when you consider that the alternative could be failure of the company that you have worked hard to grow or indeed financial difficulty inflicted on your family.
If you are a high-earner or a business owner with questions or concerns about business wills, estate planning, savings, assets or protecting your business interests, please get in touch to arrange an appointment with a member of our Private Wealth team or phone our Altrincham team on 0161 929 8494, our Stoke-on-Trent solicitors on 01782 205000 or our Birmingham team on 0121 516 3025.