It is extremely important that every business owner has plans in place detailing what happens to their business in the unfortunate circumstance of their demise.
Drafting a business will ensures your wishes are honoured when you are no longer here and allows you to have control over the future of the business, ensuring a few key things, as outlined below.
The business continues to be managed correctly
Without a will, it is left to chance on who will inherit the business from you. It is likely your immediate legal family would inherit control of the business and they may not have the skillset to keep it functioning, or be happy with taking on the responsibility. With a business will, you can detail not only ownership of the business, but also management. Existing shareholders who are familiar with the business can keep control of it and ensure management continues to run smoothly.
A smooth transition for your employees
Periods of uncertainty can be unsettling for employees and cause disruption for the business. Without a will, the future of your business is out of your control, and so is the future of the employees. A business will can set out responsibilities of management and a plan for the future of those employed within your business.
Financial stability for the future
Without a business will, bank accounts of the business can be frozen once the owner passes away. This means the business would no longer be able to pay staff, suppliers, or rent. A business will ensure that cashflow won’t be blocked if the account holder passes.
Yvonne Carratt, head of the wills & probate department at JMP Solicitors is an Associate member of the Society of Trusts and Estate Practitioners and also holds the Step Advanced Certificate in Advising Vulnerable Clients.
For further information please call Yvonne on 01476 565 295 or email [email protected]
