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Most people will have made a personal will by now, particularly if they are married, in a civil partnership or if they have children. However, how many business owners have made a will which takes into account their business assets?
At Swansea Legal Solutions, we advise our clients who own a business to do this as provisions should be made for a business should an owner pass away.
Reasons Why Business Owners Need a Will
Business owners need a will for several reasons:
- Asset distribution: A will allows business owners to specify how their assets, including their business, will be distributed after they pass away. Without a will, the legal system will dictate how assets are distributed, which may not align with the owner’s wishes.
- Appointing an executor: A will allows business owners to appoint an executor who will manage the distribution of their assets and oversee the winding down of their business. This can help ensure that the owner’s wishes are carried out and that the business is properly handled after their death.
- Minimizing conflict: A will can help minimize conflict among family members or business partners who may have competing interests in the business. By clearly stating how the business will be managed and distributed, a will can reduce the likelihood of disputes and legal challenges.
- Tax planning: A will can also help business owners plan for tax liabilities that may arise after their death. By working with a qualified attorney, owners can create an estate plan that takes into account their tax obligations and ensures that their assets are distributed in the most tax-efficient way possible.
In short, a will is a critical component of any business owner’s estate plan. It can help ensure that their wishes are carried out, minimize conflict among family members and business partners, and provide for tax-efficient asset distribution.
When Should Business Owners Create a Will?
A business owner should make a will immediately, and ideally as soon as they begin to acquire assets or establish a business. However, it is never too late to create a will, and it is always better to have one in place than to die intestate (without a will).
In particular, a business owner should consider creating or updating their will if any of the following circumstances apply:
- Starting or acquiring a business: If a business owner starts or acquires a business, they should create a will that addresses how their business will be managed and distributed after they pass away.
- Changes in family circumstances: If a business owner gets married, divorced, or has children, they should update their will to reflect their changing family circumstances.
- Changes in business circumstances: If a business owner’s business changes significantly, such as through mergers, acquisitions, or the addition of new partners, they should update their will to reflect these changes.
In summary, a business owner should make a will as soon as possible and update it as circumstances change. This will help ensure that their business and other assets are distributed according to their wishes and that their loved ones are provided for after their death.
Swansea Legal Solutions
If you’re a business owner looking to set up a will to ensure your assets are distributed appropriately, call the team at Swansea Legal Solutions today. We specialise in all aspects of will writing and estate planning. You can book an appointment with a member of our specialist team by calling 01792 420844 or find out more here.
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