Wills & Business Assets

A will is a legal document that expresses your wishes for how your property is distributed upon your death, who manages your property, and your final wishes. Sometimes called a last testament, this allows you to choose executors and beneficiaries to manage and receive your estate upon your death.

Business Ownership

If you own all or part of a company, even if it’s a small business or one without many assets, it should be addressed in your will. Remember that companies have value and often have assets of their own.

You’ll want to designate who will receive your interest in the business. This will avoid confusion and allow for a smoother transition in ownership.

If you know a certain family member is interested in continuing your business after your death, consider bequeathing your business interest to that person. If you don’t want your business to continue after your death, you could indicate that the business should be dissolved, the assets liquidated, and the proceeds distributed to your heirs equally.

Before including your business interests in your will, check the formation documents of your business to see if they have instructions for what happens on your death. Sometimes these documents may specify that the business will be dissolved on your death, or that your interest passes to your partner or a specific person.

Business Assets

Business assets fall into three broad categories: tangible, intangible, and intellectual property.

Tangible Assets

Tangible assets are those that have a physical substance, such as currencies, buildings, real estate, vehicles, inventories, equipment, art collections, precious metals, rare-earth metals, Industrial metals, and crops.

Intangible Assets

An intangible asset is a non-physical asset that a company owns.  Goodwill, brand recognition and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets. Intangible assets exist in opposition to tangible assets, which include land, vehicles, equipment, and inventory.

Intellectual property

A type of intangible asset that includes trademarks, patents, logos, websites, domain names, and software. Intellectual property is often protected by copyright or trademark protection.

To learn more about your options when it comes to wills & business assets, click here.