Identify the legal ownership first
A sole trader owns business assets personally. A company owns its own assets while the shareholder owns shares. Partnership property can be governed by the partnership agreement. The Will must deal with the right asset.
Check shareholder and partnership agreements
Pre-emption rights, buy-sell provisions, options and compulsory transfer clauses can override the assumption that shares or partnership interests simply pass to the named beneficiary. Coordinate the Will with those documents.
Choose executors who can handle the business
A trading business can need urgent decisions after death: banking, payroll, contracts, management and sale negotiations. Consider whether at least one executor has the experience or professional support to manage those issues.
Business Relief and the 2026 changes
Qualifying business property can receive Business Relief from Inheritance Tax. From 6 April 2026, the 100% rate of combined Agricultural and Business Relief is subject to a £2.5 million allowance for an individual, with 50% relief on qualifying value above the allowance, subject to the rules.
Decide whether the business should pass, be sold or be bought out
Not every child wants or is able to run the business. The plan can distinguish between management and economic value, and can provide a mechanism to sell or buy out an interest rather than forcing unsuitable co-ownership.
Equalising children needs liquidity
If one child receives the business and another is to receive cash or investments of similar value, check whether the estate actually has enough liquidity. Life assurance or staged arrangements can sometimes support equalisation, but policy ownership and trust arrangements need separate review.
Update the plan as the business changes
A Will written when a company was worth £200,000 may produce a very different result after growth, sale, restructuring or new shareholders. Business owners should review estate planning regularly.
Frequently asked questions
Can I leave company shares in my Will?
Often yes, but shareholder agreements and the company’s articles can restrict or control transfers.
Does Business Relief mean no IHT on the company?
Not automatically. Qualification matters and the 2026 rules cap the value receiving relief at 100% before 50% relief applies to excess qualifying value.
Can my executor run the business?
Executors may have to preserve or manage business value temporarily, but practical authority and company governance should be checked.
Should I leave the business equally to all children?
Not necessarily. Equal ownership can create management problems where only one child is active in the business. The right structure depends on family and business circumstances.
Tell us what you want to achieve
You do not need to know the name of the legal document or trust before speaking to us. Explain the family, property or planning issue and we can discuss the relevant options.