Identify what the owner actually owns
A business may be operated by a company, trust, partnership or sole trader. The estate may own shares in a company but not the company’s underlying assets. Trust assets may not form part of the deceased’s estate in the same way as personally owned property. The structure determines what a will can and cannot transfer.
Company control after death
Consider who can exercise shareholder rights, appoint directors and access records. A company with a single director/shareholder requires different continuity planning from a company with multiple owners and an active shareholders agreement.
Shareholders agreements and buy-sell arrangements
For a multi-owner business, the surviving owners may not want to become business partners with the deceased owner’s beneficiaries. A buy-sell mechanism can set out whether shares must or may be sold, how they are valued and how the purchase is funded.
Insurance funding
Life or disability insurance can sometimes fund a buyout, but the policy ownership, beneficiary, tax consequences and contractual buy-sell obligations should be coordinated. Insurance without an aligned legal obligation can leave money available but no clear transfer mechanism.
Trust control
Where a discretionary or unit trust is involved, review trustee, appointor/principal and succession provisions in the deed. Changing the person who controls a trust is not the same thing as gifting a personally owned asset under a will.
Powers of attorney and incapacity
Succession planning should address incapacity as well as death. An enduring power of attorney may assist with personal assets and shareholdings, but company officeholder powers and trust roles require separate consideration.
Key-person knowledge
Legal documents are only part of continuity. Record essential banking, supplier, customer, licence and digital-access information in a secure process so the business can operate if the owner is unexpectedly unavailable.
Review after major transactions
A new business acquisition, shareholder entry, property purchase, divorce, refinance or restructure can make an old estate plan obsolete. Review the will and business documents together after major changes.