There are countless articles online advising business owners about how to succeed in business, but not many

talk

about an obvious but unpopular topic. For business owners, making sure that you have a last will and testament in place is essential, because you never know what might happen to you. If the worst should happen while you are running a business, the courts don’t always take the most logical steps when it comes to managing your business. Even a letter of wishes often isn’t enough to secure your business, as these documents aren’t legally binding. Here are three reasons you should make sure that your will is up-to-date to protect your business…

Avoid family conflicts

If one of your children works in the business, when you pass away, it might make sense for them to take over the family business. However, if you don’t have a will, your business may be split between your children which means one child will ever have buy out the other parties in order to keep running the business. This can lead to unnecessary animosity between your family and may even have to involve dispute resolution solicitors.

Reduce the tax burden

If you pass away without a will, your partner will inherit the company. If they decide to sell the company, the proceeds will become part of their estate and be subject to inheritance tax when they pass away. Alternatively, you could place the business in a trust and your family will continue to profit from the company without being subject to a hefty tax bill.

Protect your family

In 2004, Swedish author Stieg Larrson passed away without leaving a will. His entire estate bypassed his partner with nothing, although the Larrson family gifted her the home she had shared with her late partner. Consulting with probate solicitors is the only way to ensure your estate is split correctly between your family members.

If you are unsure about how to write a will, you can follow this handy infographic guide from Gorvins Solicitors, a specialist will solicitors in Manchester.