Why business succession planning matters for small business owners
Chris Watts – Will Writer, Fern Wills & LPAs
Last verified: 29 August 2025 (England & Wales)
Quick-read summary
Many small business owners spend years building their company but never stop to ask: what happens if I can’t carry on?
Without a plan, a business can grind to a halt if the owner dies or loses capacity. Bank accounts may be frozen, contracts cancelled, and families left without income.
Business succession planning doesn’t have to be complicated. By combining your Will, a Business Trust, and (during your lifetime) a Business Lasting Power of Attorney (BLPA), you can keep your business safe, protect your family, and avoid disputes.
👉 For a deeper look at the legal tools available, see our full Business Succession Planning in a Will guide and our Business Succession Planning with LPAs guide.
Practical checklist
Think about succession planning if:
- ✅ You own or co-own a company
- ✅ You want your family to inherit your business
- ✅ Staff rely on you to make decisions
- ✅ You want to avoid disputes between relatives and business partners
The three main tools are:
- Your Will – ensures business assets pass smoothly.
- Business Trusts – can protect shares for family and help with tax.
- Business LPAs – keep the business running if you lose capacity.
How this works in real life
Mr Davis, a sole trader plumber
When Mr Davis fell ill, he had no Will or BLPA. His staff went unpaid, and contracts were cancelled. By the time his family gained legal authority, the business had collapsed.
Mrs Cole, a consultancy owner
Mrs Cole planned ahead. Her Will matched her company’s Articles, and she made a BLPA. When she later lost capacity, her attorney kept the business running. On her death, the company was sold at full value, providing security for her family.
FAQs
1. Do I need a separate Will for my business?
No. One Will can cover both personal and business assets — but it must deal clearly with your business interests.
2. What is a Business LPA?
A Business Lasting Power of Attorney lets you appoint trusted people to make business decisions if you cannot.
3. Can business assets get inheritance tax relief?
Yes — many trading businesses qualify for Business Relief, which can reduce inheritance tax by up to 100%.
Next steps
Business succession planning protects your company, your family, and your staff. The right mix of a Will, Business Trust, and BLPA ensures your hard work isn’t wasted.
Fern Wills & LPAs can help you:
- Review your Will with business clauses
- Advise on Business Trusts
- Draft a BLPA for continuity
📞 Contact us today for guidance tailored to your business.
