As a business owner, you need to come toterms with the fact that you’ll need to leave your business one way or another.Whether it’s through passing away, quitting, handing it down to an heir, orsomething else. That’s why it’s essential to have a solid plan in place shouldthe worst happen. If you don’t, when you die your shares may end up being soldoff or broken up, meaning your business completely falls apart.
When To Draft A Will
Drafting a Will with Will writing solicitors Manchester enables you to figure out the future of your business and assets. Not only this, but it would give you greater peace of mind that you have plans in place should anything happen to you suddenly. When it comes to timings, drafting a Will as early as possible puts you in a prime position, ensuring all assets are covered from the start. For a business owner, a Will is so much more than simply who will inherit the value of the estate.
Heirs And Inheritors
If you’re running a family business, or any business whereby eventually responsibilities and assets will be passed down, it’s important to establish the heirs and inheritors. A business owner should consider:
- How many people can it be passed onto given the structure of the company?
- Who would be willing to take the business on?
- What will be the tax implications?
Though you might be planning to leave your business to a family member, you need to take into account how they feel about the decision. They might not be willing to take on the business. These are important conversations you should be having before you prepare the Will.
You may be planning to retire at the time of writing your Will. If this is the case, there are some guidelines in place to help you, such as:
- Being cautious that you don’t breach the pensions lifetime allowance limit
- Minimising inheritance tax on your estate by gifting assets in your lifetime
- Considering the transfer of interest
All of these factors could affect the success of the business once it’s passed on. Consult the best trust solicitors Manchester has to offer in order to get the best outcome when it comes to tax planning.
Setting out long-term goals for your business is vitally important, as you can make a note that you’d like your wishes to be followed in your will. For example, as a business owner you should make sure that whoever is taking over the business maintains the goodwill and values of the company.