Wills for Business Owners | Succession Planning

If you own a business, a standard will is unlikely to be enough. Wills for business owners need to cover company shares, partnership interests, and ongoing contracts that don’t simply pause when you’re no longer there. MAR Legal works with business owners to draft wills that address both personal and commercial interests, so neither is left exposed.

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business owner wills

Why Business Owners Need More Than a Standard Will

Without a properly structured will, your business interests could end up in the hands of someone with no understanding of the company, no working relationship with your co-directors, and no desire to be involved. Existing documents like your articles of association or shareholder agreement may already contain rules about what happens to shares when a director dies. If your will conflicts with those rules, it creates delay, dispute, and potential legal challenge. Wills for business owners need to work alongside your existing company documents, not against them, ensuring the business survives the transition, your family receives fair value, and your co-directors are not left managing a crisis at an already difficult time.

What Business Owners Need to Think About

Wills for business owners need to address several considerations that a standard will does not.

Why a Standard Will Is Not Enough

A personal will covers what most people think of as their estate: property, savings, personal possessions. For a business owner, the estate also includes company shares, partnership interests, intellectual property, and potentially ongoing client relationships. These assets require specific provisions. Without them, your executor may have no practical authority to manage or transfer your business interests, and the business itself may be left in limbo while probate is resolved.

Shares, Shareholder Agreements and Articles of Association

If you are a shareholder in a limited company, your articles of association and any shareholder agreement will likely contain provisions governing what happens to shares upon death. These may include pre-emption rights, which give surviving shareholders the right to buy shares before they pass to your estate. If your will contradicts these provisions, it may not be enforceable as written. Reviewing and aligning these documents before drafting your will is an important part of the process.

Business Lasting Power of Attorney

A will only takes effect when you die. But what happens if you lose mental capacity? For business owners, particularly sole directors or majority shareholders, incapacity can bring a business to a standstill. A business lasting power of attorney (LPA) allows you to appoint someone you trust to manage your business affairs if you are unable to do so. This is a separate document from a personal LPA and is specifically scoped to your commercial interests. Together, a will and a business LPA give you coverage for both eventualities.

Business Property Relief and Inheritance Tax

Business property relief (BPR) can reduce the inheritance tax liability on qualifying business assets, in some cases by up to 100%. Understanding whether your business interests qualify, and how your will should be structured to make the most of that relief, is an important consideration in the planning process. MAR Legal can explain how BPR works in the context of your will. Where specialist tax advice is required, we work alongside appropriately qualified professionals.

What getting the right Will in place means for you

  • Your business interests are dealt with in your will alongside your personal assets
  • Your shares pass to the right people without triggering a dispute
  • Your family receives fair value from your business stake
  • Your co-directors and business partners are not left in an unworkable position
  • Your will works alongside your existing company documents rather than against them

When to seek advice

  • You own shares in a limited company and do not have a will that addresses them
  • You are a sole trader or partner and have not planned for incapacity or death
  • Your existing will was written before you started or acquired your business
  • You have entered into a shareholder agreement and want to check it aligns with your will
  • You want to understand how business property relief applies to your estate

Meet the Founder

Marium brings 22 years of experience advising businesses and individuals on corporate, commercial and ILA law matters across the UK and the Middle East.

A qualified Solicitor individually authorised and regulated by the Solicitors Regulation Authority (SRA ID: 277854), Marium is also a registered Part II Practitioner and mediator in the DIFC Courts, and an established member of the Chartered Institute of Arbitrators.

Her experience spans complex legal matters for high-profile clients throughout her career, she has been awarded the fastest growing women-led business in the UK recognised by Fortune 500 and former Prime Minister David Cameron.

Marium Razzaq - Solicitors in Manchester
Marium Razzaq
Solicitor & Director Mar Legal
MCIArb

Why Business Owners Choose MAR Legal for Wills

Solicitor Led Advice

Our solicitors look at your will alongside your company documents to make sure they work together.

Plain Language

We explain the options without the complexity, so you can make decisions with confidence.

Fixed Fee Pricing

Clear costs agreed upfront with no unexpected charges as the work progresses.

 
Commercial Understanding

We work regularly with business owners and understand the issues that a standard will does not address.

Trusted by Business Owners across the UK for clear, accessible advice on Wills

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How Our Will Process Works For Business Owners

01

Initial consultation

We discuss your business structure, your personal circumstances, and what you want to achieve for both your family and your business.

02

Document Review

We review any existing company documents, shareholder agreements, or articles of association that may affect how your business interests can be dealt with in your will.

03

Drafting

Our solicitors prepare your will and, where relevant, a business LPA, making sure each document is consistent with the other and with your company’s existing framework.

04

Signing and Execution

We guide you through the formal signing process to ensure everything is properly executed and legally valid.

What Our Clients Say

Common Questions from Business Owners

You do not need a separate will, but your existing will needs to specifically address your business interests. A standard personal will is unlikely to contain the provisions needed to deal with company shares, partnership interests, or ongoing business obligations. If your will does not address these, your executor may have limited authority to act, and your business interests could pass in a way that creates problems for your family, your co-directors, or the business itself.

This depends on your company’s articles of association, any shareholder agreement in place, and what your will says. Many shareholder agreements contain pre-emption rights, giving surviving shareholders the option to buy your shares before they pass to your estate. If your will attempts to leave shares to someone outside that process, it may conflict with those rights. Reviewing your company documents alongside your will is the most reliable way to make sure your wishes can actually be carried out.

A cross option agreement is a document used alongside shareholder protection insurance. It gives surviving shareholders the option to buy the deceased’s shares, and gives the deceased’s estate the option to sell them, at an agreed value. It is typically used to ensure the business can be bought back from the estate without dispute and that the deceased’s family receives fair value. It works alongside a will rather than replacing it, and needs to be considered as part of an overall succession plan.

A business lasting power of attorney is a legal document that allows you to appoint someone to manage your business affairs if you lose mental capacity. It is separate from a personal LPA and is specifically scoped to commercial matters such as managing business bank accounts, signing contracts, and making operational decisions. For sole directors and majority shareholders in particular, it is an important document because the business may have no legal authority to continue operating without it.

Business property relief (BPR) is a relief from inheritance tax that applies to qualifying business assets. Depending on the nature of the asset, it can reduce the taxable value by 50% or 100%. Shares in an unquoted trading company that have been held for at least two years will typically qualify for 100% relief. How your will is structured can affect whether that relief is fully used. Understanding BPR is an important part of business succession planning, and where specialist tax advice is needed, we refer to appropriately qualified professionals.

If you are the sole director of a company and you lose mental capacity, the company may be left without anyone who has legal authority to make decisions. Depending on your articles of association, you may be automatically removed from office, which could leave the business entirely without a director. Without a business LPA in place, the people around you may need to apply to the Court of Protection to gain authority to act, which takes time and money. A business LPA avoids that outcome by appointing someone you trust in advance.

MAR Legal provides will drafting, business LPA preparation, and succession planning advice for business owners. We do not provide financial advice or specialist tax planning services. Where matters involve inheritance tax, business property relief calculations, or regulated financial advice, we work alongside appropriately qualified professionals. We do not undertake probate or reserved legal activities.