PRIVATE WEALTH TEAM FOR BUSINESS.

Yes — it is possible to leave your business as a gift in your will, but the right approach depends on your business structure.

• Sole traders or sole directors can gift the business outright to chosen beneficiaries.

• Shareholders in partnerships or limited companies are restricted by the company’s articles or constitution, which may dictate how ownership is transferred.

Although a simple outright legacy to beneficiaries is an option, it is rarely the most effective way to protect the goodwill and long-term value of the company. A more robust approach is to set up a trust within your will. This provides protection and control, ensures the continuity of the business, and may deliver inheritance tax planning advantages. Professional advice is strongly recommended to make sure your succession strategy aligns with both your commercial and personal goals.

Business owners can significantly reduce liabilities through reliefs such as Business Property Relief (BPR). One effective strategy is creating a Business Property Relief Trust within your will.

Here’s why this matters:

• On the first death, business shares usually pass to a surviving spouse tax-free.

• On the second death, those same assets may lose their BPR status (e.g. if the spouse retires, no longer runs the company, or sells the shares).

• Once converted to cash, the assets become exposed to 40% inheritance tax.

A BPR Trust helps bridge this gap by transferring qualifying business assets into trust rather than directly to the survivor. Trustees can then manage the assets according to a letter of wishes — maintaining goodwill, supporting future growth, and ensuring the business continues to run as intended.

This approach safeguards both the company’s legacy and the family’s wealth, making it a valuable tool in corporate estate planning.

Corporate estate planning focuses on structuring your business assets and ownership for tax efficiency, asset protection, and family wealth transfer. Business succession planning, on the other hand, is about preparing for the smooth transfer of ownership, whether to family members, your management team, or an external buyer. Together, they provide a complete strategy for protecting both your business and your personal legacy.

A cross option agreement is a legal arrangement often used by shareholders or business partners. It sets out how shares will be transferred if one party dies or becomes incapacitated. This protects surviving shareholders while ensuring the deceased’s family receives fair value. Cross option agreements are a core part of many business succession planning strategies, helping avoid disputes and securing business continuity.

Without a clear succession plan, businesses often face:

• Disputes between family members or shareholders

• Exposure to unnecessary inheritance tax or capital gains tax

• Uncertainty for employees and the management team

• Risk of a rushed or undervalued sale

A tailored plan gives clarity, preserves value, and ensures your company continues to thrive under new leadership.