Article
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A will when you own a business
Your shares don’t always pass the way your will says. How owners can look after both the company and the family.
By
Tom Penn
If you own shares in a private company, your will isn’t the only document that decides what happens to them. The company’s articles and any shareholders’ agreement may say who can own the shares, and on what terms.
Read the company documents first
Many articles give the other shareholders the right to buy a deceased shareholder’s shares. If yours do, your family may receive the value of the shares rather than the shares themselves. That can be the right outcome, but your will should be written knowing it.
Think about who runs the company
Your executors will deal with your estate, but they won’t automatically be able to run the business. A short note on who should step in, and a lasting power of attorney for the business if you become ill, can save weeks of uncertainty.
Check the tax position
Some business assets qualify for relief from inheritance tax. The rules are detailed and have changed recently, so we work with your accountant on this part.
This is general information, not advice on your situation.
This is general information, not advice on your situation. For advice, start a matter or call 020 7946 0958.
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