What happens to my sole trade business on my death?

If you are a sole trader business, technically the business comes to an end when you pass away. 

This is because the law does not distinguish between the business, and you as a sole trader.

All assets of the business would form part of your estate and would pass via your Will, or if you do not have a Will in place, under the rules of intestacy.  

The bank accounts will be frozen until probate has been granted, which can take many months to obtain.  If you have employees or customers that are relaying on the business, this can cause a major problem.

It is therefore imperative that you have an up-to-date Will in place outlining your wishes. It is also strongly advisable to consider succession planning as soon as possible to ensure the smooth running of the business in the future, in the event anything was to happen to you. 

How can Charlton Baker help you?

If you would like to discuss successful planning and assistance with drafting your Will to protect your business, please contact us 01380 723692 or email us here. 

Here at Charlton Baker we are qualified do deal with all of your Wealth, Will and Probate matters. Please visit our Wealth, Wills & Probate Services page for more information. 

Other topics you might find useful:

Why do I need a Will?
Characteristics of a valid Will
How often should I change my Will?
How do I choose an executor for my Will?
What is probate and how does it work?
Why do I need a Lasting Power of Attorney (LPA)?
What happens to limited company shares on the death of a shareholder?
How do you pay Inheritance Tax when you have no access to the funds?