All business owners should make a Will, not only to protect their family, but also for their staff and business partners.

Business Property Trusts

You may own a business that is eligible for an inheritance tax relief known as Business Property Relief (BPR), applicable to most types of trading or service business (sole trader, partnership or Ltd company).

However, without a proper Will, this BPR may not be fully utilised, resulting in a much larger than necessary (and possibly avoidable) inheritance tax bill.

A Business Property Trust is a type of discretionary trust aimed at avoiding this.  However, more importantly, those people with businesses virtually never plan for the passing on of their shares in the businesses, resulting in unforeseen consequences for the remaining co-owners as well as tax consequences. 

Lasting Powers of Attorney

A Power of Attorney for a business owner is also really important. If the business owner is in control financially and legally, what would happen to the business in the event that the owner loses mental or physical capacity, like a stroke or serious injury? We never know if or when this may happen.

They may wish to allow someone else who they trust to continue running their business and keep it operating, while they are unable to do so, rather than risk the business fail just because they can’t manage it themselves.

It’s something a lot of business owners put off, even though it’s really important and could force the closure of the company if not in place, especially when this is avoidable. 

APS Legal & Associates can provide expert specialist advice to businesses on specialist Wills and Lasting Powers of Attorneys.