5 Reasons Why Business Owners Need a Will

Up to 70% of people are without the protection of aincluding inheritance tax and various forms of business
valid or up-to-date will. Many of these will be businesstax relief. Whilst good tax advice from an experienced
owners or directors. Failing to make a will can create awills solicitor can be highly complex, it can also be
serious risk to family and business partners. Make surerelatively simple and does not have to be expensive.
that you are not one of them and that not only do youHowever failure to make the most of tax relief for
have a valid will but that it is updated at least onceyour business could prove incredibly costly -- make
every five years to take account of changing personal,sure you don't leave most of your inheritance to the
tax and business circumstances. As a business owner,tax man.
you should make sure that in particular your will4. A will properly drafted by a solicitor will help to
ensures that:prevent potentially highly divisive and expensive claims
1. Your business continues to run after you die - failingon your estate - claims even against your share of the
to clarify who should inherit your business interests orbusiness. Unnecessary litigation is absolutely lost thing
how your business should be divided upon sale, couldyour business needs after you pass on. Sadly
leave the entire venture in chaos.arguments over who should inherit are becoming
2. That your business interests are inherited, within orincreasingly common, and can split families as well as
outside the family, as you would wish. In particular, yourdestroy businesses.
will and any partnership, shareholders agreement or5. There is adequate succession planning for directors.
company documentation should adequately provideA properly drafted will need not be expensive and
that your intended beneficiaries correctly inheriteven the most complex will is nowhere near as
whatever company shares or part of your businessexpensive as the cost of court proceedings to decide
you wish to leave them - this is particularly importanthow to divide an estate following a challenge to the will
as business documentation such as a partnershipor an invalid will. If you are a company director or own
agreement can take precedence over your will inyour own business, make sure your will is accurate,
case of conflict between the two.up-to-date and actually reflects your wishes - or get a
3. The will maximizes potentially significant tax savingsnew will drafted by a wills solicitor as soon as possible.