Wills for business owners

By James Beresford, head of Wills, Tax, Trusts and Probate at Slater+Gordon.

I am often asked whether business owners must make specific bequests of their business interests in their Wills. The simple answer is “no”: shares in a private limited company can pass to nominated beneficiaries under the residuary clause of the Will.

However, it may be preferable for the spouse not to inherit business interests directly, as this may mean they would have an involvement in the day-to-day running of the company and this could cause issues for other shareholders/directors. There is a solution to this problem, which is to make a specific bequest of the business interests (shares) to a Trust.

By using a Trust in the Will, the surviving spouse can benefit from the shares (i.e. receive the dividend income) but as they will not own the shares, they will have no involvement with the day-to-day running of the business. If the business is trading, then Business Property Relief for Inheritance Tax may be available.

A Trust also allows an element of legacy planning; it would ensure the assets can remain in trust for up to 125 years. This could prevent a situation whereby future generations could squander and put at risk all the hard work the deceased had invested into the business during their lifetime; thus giving rise to the old saying: ‘the first generation builds the business, the second generation makes the business and the third generation squanders the business’.

Enjoyed this? Read more from Lancashire Business View

Latest news

1

Another Lancashire Bodycare store to shut Nick Holloway of administrators Interpath

Another Lancashire Bodycare store to shut

16 Sep 2025

2

Family business relocates in Blackburn Tristar relocation

Family business relocates in Blackburn

16 Sep 2025

3

Taste Lancashire Producer Awards 2026 open for applications Taste Lancashire Producers awards

Taste Lancashire Producer Awards 2026 open for applications

15 Sep 2025

4

Stuart Buckley appointed head of sales and account management at Netcentrix Stuart Buckley

Stuart Buckley appointed head of sales and account management at Netcentrix

15 Sep 2025

5

Preston City Council pushes for fair pay Coun Valerie Wise

Preston City Council pushes for fair pay

15 Sep 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Sub36 Networking - Follow the signs
Sub36 Deaf Village Social1200
Networking
17 Sep 2025

Sub36 Networking - Follow the signs

The Deaf Village, Blackburn, BB2 5EN

10:00 - 12:00

LBV124 September/October Launch Event
MBP Arc Cinema Preston Opening 205
Networking
18 Sep 2025

LBV124 September/October Launch Event

The Arc Cinema, Preston, PR1 2BL

08:30 - 10:30

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Preston Tech Connection - The Ultimate Tech Quiz!
Preston Tech Connection Sept 25.png.png
LBV Hub Networking
16 Sep 2025 - 16 Sep 2025

Preston Tech Connection - The Ultimate Tech Quiz!

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:00

The Business Network Central & East Lancashire
LBV Hub Networking
17 Sep 2025 - 17 Sep 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation
Chorley Council breakfast event new
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation

Worden Hall, Leyland, PR25 3DH

08:00 - 11:00

Preston Freelancer Meet-Up: September
Sept Freelancer (1).png.png
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Preston Freelancer Meet-Up: September

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Speed Networking with BNI
2.png.png
LBV Hub Networking
24 Sep 2025 - 24 Sep 2025

Speed Networking with BNI

Chorley Football Club, Chorley, PR7 3DU

16:00 - 19:00

The Marketing Meetup IRL: Lancashire - September
TMM Lancashire
LBV Hub Networking
25 Sep 2025 - 25 Sep 2025

The Marketing Meetup IRL: Lancashire - September

Chorley, PR7 2SL

18:00 - 20:00

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) drop-in day
MTD drop in session.jpg.jpg
LBV Hub Seminars
25 Sep 2025 - 25 Sep 2025

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) drop-in day

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) drop-in day, Blackburn, BB1 5QB

10:00 - 16:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin