Have you included your business in your Will?

Running a business means taking responsibility for decisions, people, and outcomes.

One thing many owners don’t plan for is what becomes of the business when they are no longer here.

If the business has value, it should be reflected in your Will, just like any other important asset.

Why your Will should cover more than just personal assets

When we talk about Wills, most people think about passing on property, savings, or treasured possessions, but if you own or co-own a business, that is an asset too.

Leaving it out of your Will could create difficulties for the people you want to benefit.

Making provision for your business involves stating clearly who should inherit it and ensuring they have what they need to take it forward, whether that means running it, selling it, or winding it down.

What can go wrong if your business is not mentioned in your Will

Not including your business in your Will can result in:

• Operational delays while your estate is administered
• Missed tax planning opportunities, particularly around Inheritance Tax
• Your business interests being passed to someone unintended under intestacy laws

These might not be disasters at first glance, but they are preventable problems that can create unnecessary complications, especially at a time when clarity is most needed.

How your business structure affects your Will

The way you own your business changes how it should be addressed in your Will:

• Sole traders – The business is part of your personal estate, so it must be covered in your Will if you want to pass it on or ensure it is properly wound down.
• Partnerships – Your Will should reflect any existing partnership agreement and clarify who takes over your share.
• Limited companies – Your shares are part of your estate and can be passed on through your Will. If you are the only director, consider who should step in to manage things short term.

The importance of planning early

Legal & General reported in 2024 that over half of UK business owners have no succession plan in place.

Many assume things will ‘just work out’, but the reality is often more uncertain, particularly if no formal instructions are left behind.

Future-proof your business by updating your Will

Already have a Will? It is worth reviewing to ensure your business interests are properly covered.

Haven’t made one yet? Now is a good time to start.

As a business owner, your Will should reflect the full picture of your estate.

If you would like advice on including your business in your Will or want to review what is already in place, contact us today.