Why All Business Owners Should Write A Will
- December 16, 2016
- Category: Business, Cyber Law, Family Law
For business owner’s, advice and tips tend to focus on how best to structure their day for maximum efficiency. An aspect that is commonly overlooked is the importance of having an up-to date will in place.
Whilst is isn’t a pleasant thing to talk about, it’s important to plan ahead to ensure that your family can avoid any costly and long legal dispute process. Losing a loved one is hard enough without having to add the pressure of hiring a dispute resolution solicitor.
Protect Your Family
It’s a common assumption that when you die your assets will be logically divided up and split. Unfortunately, it’s not this simple. In 2004, Swedish author, Stieg Larsson died without having his will witnessed. His partner of 32 years received nothing from his estate. After 80 million copies sold of his book and subsequent film adaptations, all that she received was ownership of the home she had lived in, but this was only given to her by his family. If you wish to protect your family, you need to make sure your assets are correctly stipulated and distributed in your will.
Avoid Unnecessary Conflict
Typically, the business will be equally split between your children if there is no will in place. If you pass away without putting a will in place, it’s very likely that they’ll run into unnecessary conflicts, if a sibling doesn’t work in the business and wants to take control and may result in a sibling having to involve a corporate lawyer to buy them out of the business.
Business property relief provides relief from inheritance tax, however, planning is required. If your partner sells the company after your death, the money from the sale will become part of their estate, and therefore be subject to inheritance tax when they pass. This will mean there will be less money for your children to inherit.
If your company states that the company will be passed to a trust and your spouse becomes a shareholder; they will continue to benefit from the company without losing value to inheritance tax.
If you do find yourself in a dispute, you can find will solicitors in Manchester that will be able to assist you.
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