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Did you know that owning a business can have an impact on your will? This is because you will need to consider who you want to inherit your shares or interest in your business. Essentially, a business should be treated like any other assets and so can form part of your family’s inheritance.
Partnership and Shareholder Agreements.
That said, it is important, when leaving a business in a will, to consider what position you hold within the organisation. For example, a sole trader is the simplest type of business, as the assets used for the business are the business’s owner and therefore this can be left as part of the estate. On the other hand, you may be a partner or a director in a business and may have signed a partnership or shareholder’s agreement.
A partnership agreement or shareholders agreement lays out what happens to your shares when you die, So, it is important that the agreement you sign has been properly drafted and provides arrangements for the deceased shares. A partner may opt for the shares go to individuals such as their spouse or children, for example. Alternatively, an agreement can be in place allowing a partner to buy out the deceased’s shares provided they are all agree with this option.
You will also need to take into account inheritance tax and other taxation issues when dealing with an interest in a business. These can be complex matters and it is advisory to consult with a specialist probate solicitor to ensure your wishes are met and that your estate doesn’t fall foul of the tax man.
Swansea Legal Solutions
Both making a will and entering into an agreement are essential for anyone involved in a business. If you need help, then the team at Swansea Legal Solutions can help. You can read more about our services here or you can call us to make an appointment on 01792 420844.
