You should consider writing a will as a business owner. It is imperative for business owners to have written a Will. Although it doesn’t make for a pleasant thought, as business owners, we’re all going to have to consider the unavoidable circumstance of leaving your business at some point in your lifetime. If you don’t plan for things like retirement, passing away or passing the throne, there could be a chance you could lose all that you’ve worked for. Therefore, having a sound estate plan in place through making a Will is essential if you own a business.
Running a business demands vision, hard work, and countless decisions that shape its future. But one crucial decision many business owners overlook is creating a will. While most people understand the importance of a will for personal assets, business owners face unique risks if they pass away without clear instructions. Writing a will is not just about protecting your family—it’s also about safeguarding the business you’ve built.
Writing a Will as a Business Owner
Having an estate plan in place means you can be confident that your assets will be protected and spread in a way you wish. A Will helps to prevent your business assets from being allocated by a court of law and being surrounded in the doubt of whether your legacy will continue the way you want it to. Writing a Will lets you plan how you want your assets to be taken care of which is why it’s imperative that you get one drafted before you retire from your business.
When should a business owner draft a Will?
It can be difficult to know when precisely you should write your Will. It’s a good idea to have your Will in place when you attain your assets. There really isn’t any right or wrong time to have it written but having one early on when you gain your assets is ideal. Basically, it’s up to the business owner, according to their plans for the estate, to choose when they write their Will.
Passing your business down to heirs
As part of the estate planning, business owners would need to contemplate what will happen after they need to step away from the daily running of the business or if they come into an unforeseen situation where they would no longer be available to their business. As a business owner you’d need to plan who will keep the wheels in motion when it comes to it. However, there’s no assurance that the beneficiary you select would want to take over the business. This is where you need to think about a few aspects to govern who would be the right choice:
- Who sincerely wants to take on the business?
- Are there numerous candidates that it could be passed on to?
- Will there be any tax implications?
It’s not a minor decision to make, so if you’re uncertain at any point in the process, you should discuss the matter with MAR probate lawyers who can help you every step of the way.
Tax planning for business owners
When writing your Will, there will be tax guidelines that you’ll need to abide by, particularly if you plan on retiring about the same time that you write your Will. For instance, the pension lifetime allowance shouldn’t be surpassed when retiring; or else, usually you’ll end up paying more tax. The inheritance tax could also be a large load on the rest of your successors or heirs which you should be mindful of and we can advise you about. As a result, you may consider giving some of your assets as a gift throughout the lifetime of the business.
Set goals when writing your Will
Writing a Will can offer you an opportunity to think about your long-standing plan for the business. You’ll be able to provide instructions on how you imagine the company to be upheld when you eventually pass away. For example, you’ll probably want the USPs of the business to continue long after you leave to ensure the business runs well.
As a business owner, can I change my Will?
For your existing circumstances to be reflected in the Will, it’s vital that your Will is kept up to date so changes can be expected. This means you may need to make a new Will when big changes happen in your life such as a marriage or having children.
Avoiding Uncertainty and Disputes
If you die without a valid will, your estate—including your share in a business—will be distributed under intestacy laws. This can lead to confusion, disputes among family members, and even conflict between heirs and business partners. Without clear direction, decision-making may stall, damaging the company’s stability and reputation. A properly drafted will ensures there is no ambiguity about who inherits your business interests and how they should be managed.
Protecting Business Continuity
For many entrepreneurs, their business is their legacy. But without a succession plan, even a thriving enterprise can collapse quickly. By setting out in your will who will take over your role, or how your shares should be dealt with, you help secure continuity. This could mean passing control to family members, appointing trusted managers, or outlining that your interest should be sold to co-owners under a pre-agreed buy-sell arrangement.
Supporting Loved Ones Financially
A business may represent your most valuable asset. Your will can specify how the income or proceeds from the business should support your family. For example, you might direct that dividends are paid to dependants, or that your share is sold and the funds distributed. Without a will, these decisions are left to the courts, which may not align with your wishes or your family’s needs.
Cross-Border Considerations
For business owners operating in both the UK and UAE, planning becomes even more essential. Different jurisdictions have different rules on inheritance, with Sharia law applying in many cases in the UAE. Expatriates and non-Muslims are strongly advised to put in place a written will that complies with the relevant local system, such as the DIFC Wills Service Centre or Abu Dhabi Civil Family Court, to ensure business assets are transferred as intended.
Peace of Mind and Professional Guidance
Ultimately, writing a will as a business owner is about control and peace of mind. You’ve invested years building your company—why risk leaving its future to chance? With proper legal advice, you can put a framework in place that protects both your business and your loved ones, ensuring that your legacy endures.
At MAR Legal, we specialise in helping business owners in the UK and UAE draft wills that address both personal and commercial interests. From structuring succession plans to advising on cross-border complexities, we provide tailored solutions to give you confidence that your business will be in safe hands.
Business Owners can contact MAR Legal for drafting or amending your Will
If you are a business owner and want to draft a Will or want to amend an existing Will, then our probate lawyer can help you ensure that you have all matters in place.
Contact MAR Legal to ensure your business is protected and get a Will is in place.