The importance of having a will – especially if you are in business

For anyone, having a current will in place is good practice. It is your final opportunity to set out how you want your assets managed and distributed and it can help your loved ones avoid the complications that arise if you die intestate.

If you are a business owner, sole practitioner, company director or partner, your will plays an even more critical role in helping ensure that your business can continue and in guiding and protecting those looking to deal with your death and manage your affairs in line with your wishes.

While most won’t want to dwell on it, if you were to die while still actively involved in your business, what would happen next? Could the business continue? Who would step in and would they have the authority or expertise to do so?

These questions are especially important if your family or other beneficiaries rely on the income your business generates. Uncertainty or delays in decision-making can create serious disruption and stress at an already difficult time.

It is important to note that different businesses will face different risks and issues.

For example, a property letting business may be able to continue with little disruption, especially with a good agent in place. A manufacturing firm or hands-on service business could struggle to fulfil orders in the immediate aftermath of the death of a significant leader. Some business may of course be so centred around one individual that they need to be wound up efficiently.

In other cases, a business may carry significant value and your executors will need the skills and guidance to secure that value for your beneficiaries.

A well-drafted will should set out instructions for how your business should be handled and reduce the risk of costly delays or disputes.

Planning to ensure that where appropriate the right tax reliefs are available is also important for business owners as the provisions in a will can make a big difference to the amount of tax that may need to be paid after your death.  This is especially important following the proposed changes to business property relief (BPR) due to take effect from 6 April 2026.

If you are in business with others, you may already have a shareholder or partnership agreement. These typically set out what should happen if a business owner dies, for example, whether surviving partners can buy your shares and how these would be valued.

These agreements generally take precedence over your will, but your will should reflect and confirm those intentions for clarity and consistency.

If you are a sole trader or work with other members of your family, then there may be no written agreement. If you do not provide clear instructions for the business in your will, it would fall to your executors to ascertain whether they have the power to continue running the business.  If they do not have the powers that they need, a lengthy and costly application to court may prove necessary.

Choosing the right executors

If you are in business, it is especially important to consider who would be an appropriate executor if they are going to need to step into managing and/or running a business. Choosing capable executors for business purposes can significantly reduce the burden and stress on family members who may not have the required business knowledge.

For limited companies having more than one company director and shareholder is a crucial step in death planning to ensure business continuity if a director dies.

If you are a sole director/shareholder, consider appointing a second director, training someone internally to cover key functions or transferring some shares (eg. to family members) during your lifetime

How Westcotts can help

At Westcotts, we regularly advise clients on business continuity, succession planning and tax reliefs as part of wider business and estate planning. We can work alongside your legal advisers to ensure your will:

• Supports business continuity
• Makes the most of available tax reliefs (eg. BPR)
• Leaves your business in the strongest position possible and protects the value in it for your family.

If you would like to review your business succession plans or discuss how your will can support continuity and tax efficiency, please get in touch with our team.