Running a business keeps most of us busy enough without thinking too far ahead. But one of the most practical – and caring – things you can do for your family and your business is to make sure you have a Will in place, and that it’s kept up to date.
It’s not the cheeriest of topics, but it’s one that can save your loved ones a lot of stress and uncertainty in the future. I’ve also given a couple of examples below where one client did nothing, and it ended in disaster for the business, whereas in the second case, everything was planned in advance.
Why Wills Are Important for Business Owners
- Shares and ownership
If you own shares in your company, these shares are an asset just like your house or savings. Without a Will, those shares pass under the rules of intestacy – and that may not be what you would want. Having a clear Will ensures your business ownership passes to the right people without unnecessary delay. - Smooth decision-making in your business
If you’re a director, the company still needs to function if you die. A Will, alongside proper planning (like appointing fellow directors), helps avoid disruption and makes sure the right people can step in quickly. - Protecting your family’s financial security
Many small businesses are the main source of household income. A Will can ensure that income, or the value of the business, is passed on in a way that supports your family. - Avoiding family disputes over the business
Sadly, disagreements can arise when there’s no Will. A clear, up-to-date Will reduces the risk of arguments and provides certainty for both your family and your business partners.
What Is Intestacy and Why Does It Matter for Business Shares?
If you die without a valid Will, you are said to have died intestate. This means your estate (everything you own – including your business shares) is divided according to strict legal rules, rather than your personal wishes.
In England and Wales, these rules prioritise spouses, civil partners and children. But they don’t take into account unmarried partners, stepchildren, close friends, or even the practical needs of your company.
For business owners, intestacy can create major issues: your shares could end up with someone who doesn’t know how to run the business, or there could be delays that put the company at risk.
Case Study 1: When a Business Collapsed Without a Will
Years ago I had a case where a father and son owned a limited company together, with shares split equally. When the father died without a Will, all of his assets – including his company shares – went to his second wife.
The son (from the father’s first marriage) didn’t get on with her, and she had no involvement in the business. The deadlock became so severe that the company was eventually struck off.
This is exactly the kind of situation that a simple, up-to-date Will could have prevented.
Case Study 2: When Good Will Planning Saved a Business
In another very sad scenario, I had two friends who were directors and equal shareholders. When one was diagnosed with terminal cancer, he acted quickly to put his affairs in order.
His Will ensured his wife received financial security, while his co-director inherited his shares and could continue running the company. They also made sure the surviving director was added as a bank signatory, preventing access issues.
This careful planning meant the business carried on smoothly, even in very difficult circumstances.
When Should You Update Your Will as a Business Owner?
You should review your Will when:
- You start or grow a business.
- You marry, separate, or divorce.
- You have children (or more children).
- Your financial situation changes significantly.
- You move house or buy property.
As a rule of thumb, review your Will every few years to make sure it still reflects your wishes and your business circumstances.
Where Can Business Owners Get a Will Written?
We’re not authorised to provide regulated legal or financial advice, but here are some practical options:
- Solicitors: Best for business owners with shares, property, or complex situations.
- Will-writing services: Affordable options from reputable firms and charities.
- Charities: Some charities run free or discounted Will-writing schemes (for example, “Free Wills Month”).
- DIY kits: Only suitable for very simple circumstances – not recommended for business owners.
Protecting Your Business with a Will
Having an up-to-date Will isn’t just about personal assets – it’s about business continuity. It can prevent disputes, protect your family, and ensure your business survives and thrives after you’re gone.
Sometimes a Will prevents a business from collapsing; sometimes it ensures the company carries on smoothly. In every case, it gives peace of mind today and security for tomorrow.