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By Lisamarie Lamb – 17th November 2017
It’s not true that all wills are the same. There is such a thing as business wills, and having one could well be very important to you and your business partners and family.
Business wills, also known as business succession planning, will help to establish who should take over any businesses that you own when you die. If nothing is in place, then a successful business can soon – within months – begin to fail. There needs to be someone to oversee the ongoing management and control of the business, for example. This person needs to understand how the business runs and works, and should also be able to delegate any work that needs to be done if that is something they are unable to carry out themselves.
What Are Business Wills
Of course, in some circumstances, this could be someone who is already running the business. The testator themselves might be the owner, but may not work in the business itself. In that case, who will be the new owner? What will happen to the deceased’s shares? Were there any personal guarantees that went along with any loans or mortgages? Does the owner want the business to continue without them at all, or do they want it to be sold, or even wound up? These questions can all be answered in a business will, and the right people will be given the right information through the document.
Business wills do not have to be separate from a personal will – a business will can simply be part of your own will. Having a properly structured business will is important as without one the business can have difficulties in continuing to run, and it may take some time for everything to be sorted out. During that time, problems can occur. For the continued smooth running of the