If you are a sole trader, you are free to decide what happens to your business after your death. That is also true if you own 100% of the shares in a company. In these circumstances, you may choose to gift your business or your shares to someone in your Will. 

If that’s the case, you will need to think very carefully about who the beneficiaries of your business should be. Are they someone who can run the business successfully? Have they got the correct skillset and the time to give the business? Some people appoint a special executor to deal exclusively with their business assets after their death and to ensure there is no interruption to the business’s ability to operate.  Alternatively, you may want your executors to be able to retain the business for a limited period until it can be sold, with the profits of sale going to your beneficiaries.

If you are a partner, however, or own less than 100% of the company, you may be tied by your partnership agreements or exit clauses in your shareholder agreement.

The value of your business may be eligible for Inheritance Tax relief at 100% but not having a Will or failing to structure your Will to take advantage of this, could mean that you miss out on the opportunity to be tax efficient. 

It is therefore very important to speak to one of our specialist Will writers if you wish to leave a business in your Will, as this is no longer a basic Will and we recommend taking advice. You can call us on 0330 043 0263 Mon-Fri 9am – 5.30pm