Corporate Wills
Corporate Wills for Business Owners
For many business owners, the most valuable asset they own isn't their home or investments, it's the shares they hold in their privately held company. A Corporate Will, also known as a Secondary Will, can form an important part of an overall estate planning strategy by dealing separately with certain corporate assets, including private company shares and company shares.
Unlike many personal assets, private company shares generally do not need to pass through probate in British Columbia. By using Corporate Wills alongside a personal will where appropriate, business owners may be able to avoid probate on qualifying corporate assets, reduce probate fees, and simplify the administration of their estate.
At Parr Business Law, our lawyers advise business owners on whether Corporate Wills are appropriate for their circumstances and prepare personalized wills that reflect both their personal and business objectives.
Where Parr Business Law Can Help
➔ Understanding Corporate Wills
Corporate Wills are designed to deal with specific business assets, particularly company shares in a privately held company. Rather than including every asset in one document, many incorporated business owners choose to have multiple wills, one governing their personal assets and another dealing with qualifying corporate assets.
Separating these assets can make the administration of your estate more efficient while helping ensure your wishes are carried out according to your overall estate planning strategy.
➔ Reducing Probate Fees
One of the primary reasons business owners establish Corporate Wills is to reduce probate fees.
In British Columbia, probate generally costs approximately 1.4% of the value of the estate assets being probated. While many personal assets require probate, private company shares generally do not. By transferring qualifying company shares through a Corporate Will rather than a personal will, your estate may avoid unnecessary probate fees.
For example, if your company shares are valued at $10 million, avoiding probate on those shares could significantly reduce the costs payable by your estate.
➔ Multiple Wills for Business Owners
Many incorporated business owners have both a personal will and a Corporate Will. These multiple wills work together as part of a broader estate planning strategy.
Your personal will typically governs your personal assets and other estate assets, while your Corporate Will deals with eligible business assets, including private company shares. Keeping these assets separate can help streamline the administration of your estate, preserve more assets for your beneficiaries, and support the ongoing operation of your business.
Whether multiple wills are appropriate depends on your individual circumstances and should be discussed with your lawyer and tax advisor.
➔ Business Continuity & Ownership
For many small business owners, maintaining continuity following death is an important consideration.
A Corporate Will can help facilitate the transfer of company shares according to your wishes while providing greater certainty for your family members, business partners, shareholder relationships, and the person acting as your executor.
Where management continuity is important, planning ahead can reduce uncertainty and help minimize potential operational disruptions while preserving the long-term value of your business.
➔ Privacy During Probate
The probate process is a public process, meaning information relating to assets passing through probate may become publicly accessible.
Because qualifying corporate assets governed by Corporate Wills may not require probate, business owners may also benefit from increased privacy regarding certain aspects of their company ownership and business affairs.
➔ Tailored Estate Planning Advice
Every business owner, company, and estate is different.
Whether you own shares in one corporation or have more complex business interests, our lawyers can advise whether Corporate Wills should form part of your overall estate planning strategy.
We take the time to understand your business, ownership structure, family circumstances, and long-term objectives before preparing wills tailored to your individual needs.
Corporate Wills FAQ
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Corporate Wills are wills that deal with qualifying corporate assets, including private company shares, separately from your personal estate. They are commonly used by incorporated business owners as part of a broader estate planning strategy.
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Multiple wills involve having more than one will to deal with different types of assets. Many incorporated business owners have a personal will for their personal estate assets and a Corporate Will dealing with eligible company shares.
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Depending on your circumstances, Corporate Wills may help reduce probate fees because qualifying private company shares generally do not require probate in British Columbia. This can preserve more of your estate for your beneficiaries.
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Incorporated business owners and small business owners who hold company shares in a privately incorporated company should consider discussing Corporate Wills with an experienced lawyer to determine whether they are appropriate for their circumstances.
Traditional legal firms all too often fail to provide a quality client experience. Our practice puts relationships first, meaning you’re treated like a human, not a number. We respect your time and energy by being timely and responsive and we strive to offer transparent, up-front pricing.
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Many business owners have both. Whether two wills or multiple wills are appropriate depends on the nature of your business, assets, ownership structure, and overall estate planning goals.
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Parr Business Law advises incorporated business owners on Corporate Wills, estate planning, and probate matters. We help clients determine whether Corporate Wills are appropriate for their circumstances and prepare personalized wills designed to protect their business, estate, and beneficiaries.