Starting a Business? Don’t Forget Your Will
Setting up a new business is an exciting time—you're chasing your dreams, building your future, and maybe even creating a legacy for your loved ones. But amidst the excitement, one essential element of planning often gets overlooked: writing a Will.
Whether you're a sole trader, part of a partnership, or running a limited company, having a Will in place ensures your business and personal assets are protected, and your wishes are followed if something unexpected happens.
Why New Business Owners Need a Will:
Starting a business means taking on new responsibilities, not just for yourself but also for your employees, clients, and family. A Will is more than just a legal document—it’s a safeguard that ensures the hard work you’ve poured into your business is preserved.
Here’s why it’s crucial for business owners:
1. Protect Your Business: Without a Will, your business could face uncertainty. The law of intestacy decides how your assets, including your business, are distributed. This could mean:
Delays in decision-making or operations.
Disputes over ownership or control.
Financial instability for your family or employees.
2. Provide for Your Family: A Will lets you specify how your personal and business assets are divided, ensuring your loved ones are cared for. Without one, the court decides who inherits, which may not align with your wishes.
3. Avoid Disruption: Losing a business owner can create chaos for employees and clients. A clear Will ensures continuity, giving instructions about who takes over and how operations should proceed.
4. Plan for Partnerships: If you have business partners, a Will helps clarify what happens to your share of the business. This can prevent disagreements and protect the business's future.
What Should Your Will Cover?
As a business owner, your Will may need to address specific elements beyond personal assets. Here’s what to include:
Business Succession: Decide who will take over your role in the business.
Financial Provisions: Ensure your family has access to income if the business is still operating.
Tax Planning: Work with a solicitor to minimise inheritance tax on your business assets.
Employee Welfare: Make provisions for employees to ensure stability and continuity.
When Should You Write or Update Your Will?
It’s never too early to write a Will, and as your business grows, it’s important to keep it up to date. Major milestones, such as hiring your first employee, reaching profitability, or entering new partnerships, are good opportunities to review your plans.
Don’t Leave It to Chance
Starting a business is a significant achievement and protecting it should be part of your planning. Writing a Will may not be the most exciting part of entrepreneurship, but it’s one of the most important steps you can take to secure your business’s future and protect your loved ones.
I’m here to help you navigate the process. For a no-obligation chat about writing a Will that works for your personal and business needs, please get in touch.
Email: hannah@hannahhowesolicitor.co.uk
Phone: (0115) 8244960
