by Tim Bishop
http://www.bishopslaw.co.uk
©
2009 Up to 70% of people are without the protection of
a valid or up-to-date will. Many of these will be business owners or directors.
Failing to make a will can create a serious risk to family and business partners.
Make sure that you are not one of them and that not only do you have a valid will
but that it is updated at least once every five years to take account of changing
personal, tax and business circumstances. As a business owner, you should make
sure that in particular your will ensures that: - Your business continues
to run after you die - failing to clarify who should inherit your business interests
or how your business should be divided upon sale, could leave the entire venture
in chaos.
- That your business interests are inherited, within
or outside the family, as you would wish. In particular, your will and any partnership,
shareholders agreement or company documentation should adequately provide that
your intended beneficiaries correctly inherit whatever company shares or part
of your business you wish to leave them - this is particularly important as business
documentation such as a partnership agreement can take precedence over your will
in case of conflict between the two.
- The will maximises potentially
significant tax savings including inheritance tax and various forms of business
tax relief. Whilst good tax advice from an experienced wills solicitor can be
highly complex, it can also be relatively simple and does not have to be expensive.
However failure to make the most of tax relief for your business could prove incredibly
costly -- make sure you don't leave most of your inheritance to the tax man.
-
A will properly drafted by a solicitor will help to prevent potentially highly
divisive and expensive claims on your estate - claims even against your share
of the business. Unnecessary litigation is absolutely lost thing your business
needs after you pass on. Sadly arguments over who should inherit are becoming
increasingly common, and can split families as well as destroy businesses.
-
There is adequate succession planning for directors.
A
properly drafted will need not be expensive and even the most complex will is
nowhere near as expensive as the cost of court proceedings to decide how to divide
an estate following a challenge to the will or an invalid will. If you are a company
director or own your own business, make sure your will is accurate, up-to-date
and actually reflects your wishes - or get a new will drafted by a wills solicitor
as soon as possible.
Credit:
About the Author: Tim Bishop is senior
partner of Bonallack & Bishop (http://www.bishopslaw.co.uk),
a firm of UK Wills solicitors with offices in the south-west, offering legal services
to private and business clients. Tim has spearheaded the firm's expansion, seeing
it grow by 1000% in the last 12 years. He is responsible for major and strategic
decisions and sees himself as an entrepeneur who owns a law firm
Related
Information: NBA
Benefit Provider - BizFilings NBA
Resource Article - Expect
the Unexpected: Tips for Planning Crisis Communications NBA
Resource Article - Ethics in
Business – From Compliance to Commitment Reprint
of this article does not constitute an endorsement by the National Business Association;
the article is for informational purposes for our members and viewers of our Web
site. |
| |
