Business owners tend to leave their wills at their later stage in life. Nonetheless, it must be remembered that it is the business owner’s legal responsibility to settle their business affairs. Otherwise, finding an individual to execute the late individual’s wishes can be inconvenient. So, therefore it is important to prevent this situation when an ill-timed situation occurs.
Making arrangements ahead of time can ease and help the period for the grieving family since this will lessen the stress. In turn, the business owner’s employees would also be affected. So, the structure within the business is crucial at this time so business affairs can continue.
The legal document the business owner will need to provide is a will. The will holds the information about how an individual’s assets and possessions will be divided and allocated and inform the executor how to proceed. Although the outcome may differ for the business owner’s family and business partners, it allows the individual the chance to decide how to distribute their belongings. Otherwise, the law will take authority in handling the affair by implementing the “intestacy rules”, which aids the law themselves on how to distribute the departed’s properties and assets.
Care must be taken to ensure that risks in the business are minimal. This is to prevent a situation where should the business partners stay dissatisfied with the final outcome, it can create difficulties for the business to progress. Without a will, this can cause distress for the individual’s loved ones. As a result, their loved ones may find themselves forced to sell their residence to cover the cost of business expenses that have been incurred such as debt. This can raise more stress and additional grief. Should debt matters be left unresolved, this can cause employees to be made redundant.
This shows the importance of having a will for a business owner, as it will lessen the chances of the business going through legal battles and liquidation. For instance, there have been situations where the law may equally split the business owner’s assets between their next of kin and the business due to the intestacy rules. Hence, the law can overlook the individual’s unmarried partner, since they are not treated as a spouse throughout the process.
By making arrangements in advance with the succession plan, this can eliminate possible disputes between the family and the business partners. So, the business can be safeguarded from discord. The individual will also have an opportunity to be granted business property relief which affects inheritance tax within the business. Therefore, should you pay less inheritance tax, this can increase financial security for the business and the individual’s family.
Therefore, to safeguard the business and loved one’s future, a will must be written earlier to reduce uncertainty as it can cause financial hardships. Further advantages, includes the fact having a will gives the individual a voice. So, should there be an unexpected incident such as mental deterioration, the will can operate as the individual’s voice when they are their most vulnerable. To commence this procedure, you can find advice from your local will writing solicitors nearby where you are based.
Lawyers are here to give their clients directions by giving them the relevant documents to sign. If you are a sole proprietor, you also have the legal responsibility for your employees’ future. So, if you are worried, you can contact your local employment solicitors or a financial advisor for advice. By acting now, you can obtain a peace of mind in return for safeguarding the interests of those you care about.
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About the Author
Contributed by Alexa Yeung. Alexa is a budding freelance writer. She wanted to write this topic after discussing this issue with her family, and believe this advice will help many business owners.