INTERVIEW | Emma Aslett on the Importance of Business Wills & LPAs

Protecting What You’ve Built: Why Every Business Owner Needs a Will and LPA

We understand that running a business often means focusing on the present - the clients, cashflow, and growth. But what happens to your business if something unexpected happens to you?

We sat down with Emma Aslett, specialist in Wills and estate planning at Penn Chambers Solicitors, to talk about the crucial difference between a personal Will and a Business Will, why Lasting Powers of Attorney (LPAs) are a must for every business owner, and how early planning can protect your legacy, your loved ones, and your livelihood.

1. What’s the difference between a standard Will and a Business Will?

A Will is a legal document that sets out your wishes for when you pass away. This legal document can set out who inherits your assets, who manages your estate, and who should care for your children should they be under the age of 18 when you pass away.

A Will is not limited to the above, but this simply provides examples.

A Business Will, however, deals specifically with your business assets and what happens to them if you die. You may wish to appoint Business Executors to specifically deal with your business affairs, and separate to other Executors who only deal with your personal affairs. You need to make sure you have appointed someone who understand the Business aspect of your estate.

The Will can also set out who should inherit your business when you pass away. It is important to understand what happens to your business when you pass away and who is entitled to your "share". Those who are automatically entitled under the Rules of Intestacy (i.e. the law which dictates how a deceased person's assets are distributed when they die without a valid Will) may not be the people you want to inherit the business.

Are they business savvy, or even want to continue the business? You need to consider the reality of who would be the best person(s) for your business.

Although if there is more than one shareholder, you may also wish to consider a cross-option agreement, which is a legal contract between shareholders in a company that grants each other options to buy or sell shares upon the occurrence of specific events, most commonly death or critical illness.

The creation of a Will forms an essential part of your estate planning strategy. Wills provide clear instructions on asset distribution and help avoid potential disputes among beneficiaries.

It is essential if you want your business to continue smoothly or pass to the right person.

2. Do business owners really need a Lasting Power of Attorney (LPA)?

Absolutely.

In conjunction with the Will, Lasting Powers of Attorney are as important to have in place.

A Lasting Power of Attorney is a legal document that allows you to appoint one or more people, called Attorneys, to help you make decisions on your behalf in the event that you are not able to do so. This gives you more control over what happens to you if you have an accident or suffer an illness.

Lasting Powers of Attorney relate to both your Health & Welfare, as well as your Property & Financial Affairs. In relation to your financial affairs, you may wish to appoint different people to attend to your personal financial affairs compared to that of your business financial affairs.

If you have a business, you need to ensure you have appointed someone to continue running the business in your absence.

3. What happens if you don’t have a Business Will or LPA in place?

It can cause serious disruption. Families, staff, and clients may be left in a difficult position, and the business may even need to stop trading temporarily. Planning ahead avoids all of this.

Please note that there is no automatic right for business partners to make decisions on your behalf during this time.

If you do not have a Lasting Power of Attorney in place, even your loved ones will not be able to make decisions on your behalf, whether that be about your health or finances. Please note that married couples are not exempt and, should a spouse or civil partner lose capacity, the other spouse or civil partner does not have automatic rights.

The Lasting Powers of Attorney not only provide peace of mind but also ensure that your wishes are honoured, and your affairs are managed effectively, including business affairs.

4. When should someone put this in place?

Yesterday!

Everyone should put both a Will and Lasting Powers of Attorney in place.

The one thing that can be promised is that you cannot see into the future and you do not know what is around the corner. I speak with many people, including business owners, who have been affected by a loved ones or a business partners death or lack of capacity, and it is clear it can be devastating if you have not prepared.

So many people believe that these documents are for the elderly. This is not the case. My youngest client was 18, and my eldest 101, and I have met with people of all ages in between. Many people seem to have this view that only those that are elderly with early onset dementia need these documents in place, but it is far from the case. I have also met with families who had a relatively healthy loved one who had a fall on the way to work, had a car accident, or even had a sporting accident, causing an injury which changed their life and the lives of those around them.

It is so important to put these documents in place and protect not only you, but your family, your assets and your business. The time and cost of doing so is nothing compared to the devastating emotional and financial outcomes of not preparing.

5. What’s your top tip for business owners?

Think of your Will and Lasting Powers of Attorney as part of protecting your legacy. Together, these legal instruments offer comprehensive protection and clarity for you and your loved ones during times of uncertainty. Don’t leave it to chance – speak to a professional who understands the commercial side as well as the personal.

6. How can someone get started?

Contact me to arrange a 30 minute initial call to explain the process and answer any particular questions or queries you may have.

It is a no-obligation chat, and you can then decide how to proceed from there.

My email is emma..aslett@pennchambers.co.uk

Thank you very much!

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Plan Today to Protect Tomorrow

Whether you’re a sole trader, company director, or part of a partnership, making time to put a Business Will and LPA in place is one of the most important decisions you can make. It ensures your business can carry on without disruption and gives you, your family, and your colleagues peace of mind. As Emma reminds us, it’s never too early to plan, only too late. If you’d like to learn more or book a no-obligation initial call, get in touch with Emma Aslett at Penn Chambers Solicitors.

Penn Accounts 

0207 183 6623 

The information provided in this article is not intended to constitute professional advice and you should take full and comprehensive legal, accountancy or financial advice as appropriate on your individual circumstances by a fully qualified Solicitor, Accountant or Financial Advisor/Mortgage Broker before you embark on any course of action.