5 min read
29 Aug
29Aug

Chris Watts – Will Writer, Fern Wills & LPAs

Last verified: 29 August 2025 (England & Wales)


Quick-read summary

For UK business owners, your Will is not just about your personal estate — it is the foundation of business succession planning. A properly drafted Will ensures your company shares or assets pass to the right people and align with your company’s Articles of Association.

Alongside your Will, a Business Trust can protect your business legacy and provide tax advantages. Finally, a Business Lasting Power of Attorney (BLPA) safeguards your business during your lifetime if you lose capacity.

Without this planning, families may face frozen bank accounts, legal disputes, or the forced sale of a business. With it, your business and family are both protected.


Practical checklist

Review your Will and business succession plans if:

  • ✅ You own shares in a company or are in a partnership
  • ✅ You want your family to inherit or benefit from your business
  • ✅ You need your Will to align with the company Articles of Association
  • ✅ You want to use a Business Trust to protect your family or reduce tax
  • ✅ You employ staff who depend on you for wages and leadership
  • ✅ You want to protect business continuity if you lose capacity

Core tools:

  1. Will with business clauses – cornerstone of planning.
  2. Business Trusts – secure assets for family and support inheritance tax planning.
  3. Business LPAs – ensure continuity during your lifetime if you cannot act.

What to consider

  • Alignment is critical: Your Will must be consistent with your company’s Articles of Association, otherwise the Articles take priority.
  • Trust structures: A Business Trust can hold company shares for family members, protecting against disputes and supporting tax efficiency.
  • Executors vs directors: Executors in your Will cannot automatically become company directors — this depends on the Articles.
  • Family vs business partners: Without clear instructions, disputes between heirs and co-owners are common.
  • Lifetime protection: A BLPA ensures decision-making if you are incapacitated before death.

How this works in real life

A shop dispute due to clashing documents

Mr Brown left his retail shop shares to his children in his Will. But the Articles of Association gave surviving shareholders first refusal. The conflict triggered litigation, drained resources, and caused a family rift.

Protecting family shares through a Business Trust

Mrs Khan ran a printing company. Her Will placed company shares into a Business Trust, ensuring her children benefited equally while professional trustees managed disputes. This avoided family conflict and secured inheritance tax relief.

Fern Wills ensures Will and Articles worked together

Mrs Cole owned a consultancy. With Fern Wills’ help, her Will was updated to match the Articles, and a BLPA was added. When she later lost capacity, the business continued smoothly, and on her death, the company was sold for full value.

Sole trader left staff unpaid

Mr Davis, a sole trader plumber, had no Will covering his business and no BLPA. When he fell ill, wages went unpaid and contracts collapsed. By the time authority was granted, the business had lost its value.

👉 To see how Business LPAs can keep your company running during your lifetime, read our Business Succession Planning with LPAs guide.


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 business interests.

2. What is the role of a Business Trust?

A Business Trust can hold company shares or assets on behalf of family members, helping reduce disputes and potentially qualifying for inheritance tax relief.

3. What happens if my Will conflicts with company Articles?

The Articles take priority. Your heirs may not inherit as you intend if documents are inconsistent.

4. What is a Business Lasting Power of Attorney (BLPA)?

A BLPA allows you to appoint trusted people to run your business if you lose mental capacity. It is separate from your personal financial LPA.

5. Should sole traders worry about succession planning?

Yes. Even small sole trader businesses can suffer disruption. Without a Will and BLPA, assets may be frozen, leaving staff and clients stranded.

6. Can business assets qualify for inheritance tax relief?

Yes. HMRC’s Business Relief can reduce inheritance tax by up to 100% on qualifying assets. Proper Will and trust planning is essential.


Optional Technical Notes (for those who want the detail…)

  • Companies Act 2006: Directors must act within powers (s.171) and promote the company’s success (s.172). A director who loses capacity cannot act lawfully.
  • Articles of Association: Govern share transfer rules. They override Will instructions where conflicts arise. Companies House provides model Articles.
  • Executors vs directors: Executors appointed by a Will do not automatically become directors — this requires Article or shareholder approval.
  • Trust law: Business Trusts are often created via Wills. Trustees Act 2000 outlines trustee duties.
  • OPG guidance: A BLPA covers business decisions separately from a personal LPA. Without it, deputyship applications to the Court of Protection can take 6–12 months.
  • HMRC Business Relief: Inheritance Tax Act 1984, ss.103–114. Certain businesses qualify for 50% or 100% relief. Exclusions apply (e.g. investment companies, property holding).

Sources & further reading


Next steps

If you own a business, your Will should be reviewed urgently. Aligning it with company documents, considering a Business Trust, and adding a BLPA creates a complete safety net.

Fern Wills & LPAs can help you:

  • Draft or review your Will with clear business provisions
  • Establish Business Trusts for family protection and tax planning
  • Create a BLPA to safeguard continuity during your lifetime

📞 Contact us today for expert support in protecting both your family and your business.

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