We help firm owners protect their family and their company. This short guide explains why a Will alone rarely covers what a trading firm needs.
Good planning ties together assets and liabilities, succession steps and key legal documents like Wills, trusts and powers of attorney. It also sets realistic expectations about tax and timing.
We will show common risks when a plan is missing: delays, disputes, frozen accounts and loss of control. We use clear examples — such as who can sign contracts if you are in hospital — so the ideas feel practical and familiar.
Our aim is straightforward. We want you to keep the family lifestyle secure and the company able to keep trading without you. That means reviewing choices over time as circumstances and rules change.
Key Takeaways
- Planning goes beyond a Will; it links family needs with company continuity.
- Clear documents — Wills, trusts, LPAs — reduce delays and disputes.
- Succession choices protect value tied up in shares and property.
- Professional advice often pays for itself in tax and time saved.
- Review your plan regularly as company, family and tax rules change.
Estate planning for business owners uk: what you’re protecting and why it matters
Begin with a full checklist of holdings and liabilities so your wishes work in practice. We start by listing every asset, from shares and IP to the family home. That clarity keeps decisions quick and fair.
What to protect
- Business assets: shares, partnerships, premises, intellectual property and retained profits.
- Personal assets: home, savings, investments, life cover and any other property.
- Digital items and logins — include company accounts, domains and crypto.
Mapping liabilities and cashflow risks
We map director loans, personal guarantees, leases and supplier terms so surprises do not hit the family or the firm. Identify VAT, payroll timing and loan covenants that can create immediate pressure.
Turning wishes into workable instructions
Decide who should benefit and who will have control. Update beneficiary nominations on pensions and insurance so payments reach your chosen beneficiaries fast.
For a practical next step see understanding estate planning for firm owners and protect your family’s future.
Business succession planning that keeps the company running
Choosing how ownership passes on makes the difference between calm change and costly disruption. We break the choices into three clear routes so you can match timing and goals to reality.
Choosing the right transition route
Gifting suits owners who want control transferred while they’re alive. Selling fits those who need cash or exit certainty. A gradual handover works where an heir learns the role over years.
Fairness and share ownership
Decide between fair and equal. One child may run the company while another expects a payout. Clear share terms and a share valuation calm tensions.
Preparing the company to transfer
Valuation, governance and documented processes protect value. Make sure roles, signatories and client contacts are not all with one person.
Continuity for illness or sudden loss
Have simple operational rules: who authorises payments, who speaks to the bank and where key documents live. Involve your team early but keep sensitive details limited.
| Route | When it suits | Key step |
|---|---|---|
| Gifting | Hands-on owners who want a lifetime transfer | Gradual tax-aware transfers and clear share deeds |
| Selling | Owners needing liquidity or full exit | Robust valuation and sale prep to protect value |
| Gradual handover | Families wanting training and staged control | Defined milestones, mentoring and governance updates |
For a deeper guide on business succession planning see our practical checklist and next steps.
The essential legal documents: Wills, trusts and LPAs for business owners
Good paperwork makes sure people who rely on the company can carry on without delay. Below we explain the key documents in plain terms and what each one does to protect family and business property.
Writing a Will that handles shares and partnerships
A Will names who inherits and who acts as executor. For shares and partnership interests you must say exactly how those holdings should transfer.
Choose executors who understand both family needs and company realities. They may need to value shares, trigger buyouts or liaise with advisers quickly.
Trusts: control, privacy and staged protection
Trusts keep assets private and under control until beneficiaries are ready. They can protect business property and cash from immediate division.
Trusts help when beneficiaries are young, vulnerable or inexperienced. They can delay transfer and set clear conditions for use.
Business Lasting Power of Attorney
A Business LPA lets a trusted person act if you cannot. It avoids costly court deputyship and keeps the company trading.
Pick attorneys with the skills to run company matters, authorise payments and speak with banks and suppliers.
Aligning documents and nominations
Make sure your Will and LPA do not conflict with articles of association, partnership deeds or shareholder agreements. Misalignment creates legal dead-ends.
Keep beneficiary nominations on pensions and life policies consistent with the wider plan. Include access instructions for digital assets: email, banking, accounting and domain accounts.
When to get help: seek regulated, specialist advice if shares, relief or complex transfers are involved. Small drafting errors can cost time and tax.
Inheritance tax, Business Relief and tax planning strategies in the UK
Changes in relief rules mean many owners must rethink how and when they pass on ownership.
Understanding exposure
Inheritance tax (IHT) applies where total value exceeds £325,000. The top rate can reach 40% on the excess. That risk hits hard when much of your net worth is tied up in company property or shares.
Business Relief after the October 2024 Budget
Business Relief now gives 100% relief up to £1,000,000. Any value above that cap is taxed at 20% rather than being fully sheltered.
Lifetime gifts and timing
Gifts made during life can reduce future tax liabilities. Well timed lifetime transfers may be more efficient than leaving everything to inheritance.
Cross-option vs compulsory buyouts
Poorly worded compulsory buyout clauses can eliminate relief. A cross-option agreement helps preserve relief by keeping the sale conditional on the option being exercised.
| Issue | Practical effect | Action today |
|---|---|---|
| IHT threshold (£325k) | Personal nil-rate limit may be exceeded | Review total value and liabilities |
| Business Relief cap (£1m) | Portion of firm value taxed at 20% | Check share values and relief eligibility |
| Compulsory buyouts | Risk of losing relief | Amend deeds to cross-option wording |
| Insurance shortfall | Beneficiaries may lack cash to buy shares | Consider business protection or key person cover |
Practical steps
- Obtain an up-to-date valuation.
- Check shareholder and partnership clauses.
- Explore lifetime transfers and suitable insurance solutions.
- Schedule reviews as circumstances and tax rules change.
Conclusion
A clear, connected plan keeps your family’s finances and the firm running if you can no longer act.
Protect assets, preserve continuity and keep control with simple, practical steps. Separate personal property from company holdings. Map liabilities and agree how shares should transfer.
Use written documents — Wills, trusts and LPAs — that match articles and shareholder terms. Review these as the company grows or circumstances change.
Have an honest family conversation about fairness and beneficiaries. Seek specialist advice early; the cost of clarity is often far lower than delays, tax leakage or dispute.
Start with a written inventory and a planning meeting. For detailed guidance on succession, see our business succession planning checklist.