In the challenging cut and thrust world of the entrepreneur, it’s all too easy to let the mundane aspects of life slip by. Making a Will is one of those things. We all think we have plenty of time, with more important or pressing things to do right now in launching or growing the business.
Given the uncertainty of the future, this can prove a costly mistake should the worst happen. Are you sure your hard-won business assets will land in the right hands when you’re gone? Entrepreneurs work long, hard hours to build their businesses, yet it can vanish in a flash if you don’t make your wishes plain by writing a Will.
Non-Marrieds Don’t Automatically Inherit
Marriage is somewhat unfashionable these days, but if you’re not either married or in a legal civil partnership, your partner has no rights whatsoever to any of your estate on your passing.
In an extreme scenario, a business partner could cut out your life partner completely, leaving them high and dry should they try to claim any of your business assets.
But even if that weren’t to happen, making a Will allows you to have your say in how your business affairs are taken care of and can include such things as:
- Personal loans that may be outstanding to the business
- How the business is run during the administration period
- The sale of the business to other business partners
Tax implications can have an impact on the running of a business after your passing, so taking specialist tax advice on how to organise your affairs in a Will can be a great help to those taking over your estate.
If you are married, give a thought to any stepchildren. They have no right of inheritance unless you specifically mention them in a Will and make suitable provision.
Sobering thoughts, but easily dealt with just by taking the time to make a Will.
How To Make A Will
There are various common routes to Will making:
- DIY, via Will kits you can buy over the counter in High Street Stationers. These are legal but, as you have to write the Will yourself, there is a high risk of mistakes or errors that could lead to a Will being challenged and found invalid.
- Online Will-writing services or Will writers. Also legal, but look for ones that offer to have your Will looked over by a legal specialist.
- A solicitor. The safest route, since those with probate experience can make sure you’ve considered all aspects and have left nothing out. Even if you consider your wishes straightforward, there may be complications you won’t have thought of on your own.
Take care when choosing a service because Will writing is unregulated. Chose a Will writing company that belongs to the Institute of Professional Will writers, or look on the Law Society’s web site to find a solicitor with probate expertise in your area.
It’s also possible to get Wills written through Trade Unions and, finally, several times each year a couple of organisations offer free Will months:
- In November, Will Aid offers Will writing services. They’re offered free, although it’s hoped you’ll donate at least £95.
- In March and October Free Wills Month offers Will writing services to those aged 55 and over.
Donating to Charity
Many entrepreneurs like to leave a legacy to a favourite charity in their Will, and there are various ways you can do this:
- A Reversionary Gift – leaves the income of your estate to your family but the capital passes to the charity on their passing.
- A Residuary Gift – leaves a share of your estate to a charity once dependents and friends are taken care of.
- A Pecuniary Gift – leaves a specified amount of money to a charity.
A solicitor can help you work out which method would best suit your circumstances – or contact the charity for more information.
Making a Will should move up everyone’s priority list, but for entrepreneurs who need to consider their business assets as well as their personal ones, it’s even more important to make provision for dependents.