6 practical estate planning tips for time-poor business owners

1. Make sure you have a valid will in place

Your will should ideally be the cornerstone of your estate planning efforts. Without one, your estate will usually be distributed according to the rules of intestacy. 

This means your assets may not pass according to your wishes and can be especially problematic for business owners.

If your company forms a significant part of your estate, failing to outline what should happen to your shares could lead to uncertainty or delays.

For instance, your shares might pass to family members not involved in the business, which could affect decision-making or ownership structures.

Moreover, you could even inadvertently create disputes between loved ones or business partners.

Ensuring your will clearly sets out how both your personal and business assets should be distributed could help avoid these issues.

It’s also worth reviewing any shareholder agreements alongside your will to ensure they’re aligned, as inconsistencies between the two could cause complications.

2. Understand how your business could be treated for Inheritance Tax

If you’re a business owner, your company could be one of your largest assets. As such, it’s important to understand how it may be treated for IHT.

As of 2026/27, IHT is typically charged at 40% on the value of your estate above the available thresholds. This means that, without planning, a significant portion of your wealth could be lost to tax.

However, Business Relief may reduce the taxable value of qualifying business assets by up to 100%, provided certain conditions are met.

For example, shares in an unlisted trading company may qualify for 100% relief, while other assets may qualify for 50% relief.

That said, not all businesses qualify. Companies that mainly deal in investments or property are less likely to be eligible. There are also rules about how long you must have owned the business, typically at least two years.

Understanding your position now may give you time to restructure or plan accordingly if needed.

3. Put a Lasting Powers of Attorney in place

Estate planning is also about protecting yourself during your lifetime.

If you were to lose mental capacity due to illness or injury, you may no longer be able to make decisions about your finances or your business.

Without an LPA in place, your family or business partners may need to apply to the Court of Protection to act on your behalf. This can take several months and may delay important decisions.

This is particularly relevant for business owners, as it could affect how the company runs, especially if you’re responsible for key decisions.

Creating an LPA allows you to nominate someone you trust to make decisions on your behalf if required.

This can help ensure continuity in both your personal finances and your business.

4. Consider how your business will continue after you’re gone

One of the more overlooked aspects of estate planning for business owners is succession planning. 

For example, you may want to consider:

• Who will take over your role
• Whether your shares should be sold or retained
• How remaining shareholders would fund the purchase of your shares.

Without a clear plan, your business could face disruption at a difficult time.

You may choose to implement shareholder protection policies. These can provide funds that allow remaining shareholders to buy shares from your estate, helping maintain control of the business while ensuring your family receives fair value.

While these arrangements can be complex, thinking about them in advance may help protect both your business and your beneficiaries.

5. Don’t assume your estate plan will stay relevant over time

Once you’ve given your estate plan considerable thought, it can be tempting to consider it “done”. However, both your personal and business circumstances are likely to change over time.

You may grow your business, bring in new partners, or experience changes in your family situation.

If you don’t update your estate plan to reflect these changes, it may no longer achieve the outcome you intended.

For example, failing to update your will after bringing in a new shareholder could result in your shares passing in a way that conflicts with your current business structure.

Reviewing your estate plan periodically, even once a year, may help ensure it remains aligned with your circumstances.

6. Work with a financial planner to save time and reduce complexity

When you’re already managing a busy business, finding the time to deal with estate planning can be challenging.

This is where working with a financial planner can be valuable.

Rather than trying to navigate complex rules and decisions yourself, we can help you focus on what matters most.

We can also coordinate with solicitors and accountants to help ensure your will, tax planning, and business arrangements all work together.

This can reduce the time you need to spend on the process while helping to ensure nothing important is overlooked.

To find out more, please call us on 01822 617 960, email info@hansfordbell.co.uk, or fill in our online contact form, and we’ll be in touch.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning, tax planning, Lasting Powers of Attorney, or will writing.