What Is A Business Will And Why Do You Need One?

Do You Have A Business Will?

When I meet a business owner for the first time, we go through a very detailed interview process.  Often they are caught off guard because they expect me to come in and start pushing insurance products. You can’t figure out what someone needs until you do a detailed inventory of their situation.  Still, insurance is rarely discussed in our initial meeting unless we discuss their existing insurance.  The interview is intended to show them, that there’s a lot of financial housekeeping to be aware of when going through an estate planning exercise.  The first real question is whether they have an updated will.  A lot of stammering and excuse-making often follows this.  Usually, if they have a will, it hasn’t been updated in a while.  Then, I ask if they have a business will.  In 80% of the cases, the next question they ask is “What’s that?”  Most have no idea why it’s so important.

When considering estate planning, most focus on personal assets—our home, bank accounts, or perhaps treasured belongings. But if you’re a business owner, another piece of the puzzle needs your attention: what happens to your business when you’re no longer around? For business owners in Ontario, the answer could be creating a corporate will, a step that could mean the difference between your business thriving or facing an uncertain future.

If you’ve spent years building your business, it’s only natural to want to protect it. Let’s dive into why a corporate will might be a smart decision to help secure your legacy.

What Is a Corporate Will and Why Should You Care?

A corporate or secondary will is designed to handle your business interests separately from your personal estate. Your personal will covers assets like your house and bank accounts, while the corporate will is crafted specifically for your business.

Why does this matter? Because handling your business separately means you can better control what happens to it, without it being bogged down by the broader probate process. It’s about ensuring your company gets the focused attention it needs after you’re gone.

The Key Benefits of Corporate Wills

1. Avoiding Probate Fees on Business Assets

One of the most compelling reasons to have a corporate will is to avoid probate fees on your business assets. In Ontario, probate fees—officially known as estate administration taxes—are calculated based on the value of your estate and can become a significant burden:

• $0 for estate assets up to $50,000

• $15 per $1,000 above $50,000

For business owners, these fees can add up quickly. However, thanks to a key court decision in 1998 (the Granovsky Estate case), Ontario business owners can avoid paying probate fees on assets held in a corporate will. Using a corporate will, you can save a potentially substantial amount of money that might otherwise be lost to fees—money that could stay within your family or continue to help your business.  For a $10 million business, probate fees will cost $150,000. 

2. Protecting Your Privacy

Privacy is another often-overlooked benefit of a corporate will. When a will goes through probate, it becomes a public document, which means the details of your estate—who gets what, and how much—can be accessed by anyone. For many business owners, the idea of their company’s inner workings being exposed is far from ideal.

A corporate will avoids this issue. Since it typically doesn’t go through probate, your business affairs can remain private, shared only on a need-to-know basis. This helps protect sensitive information and keeps your business’s value and management decisions out of public scrutiny.

3. Speeding Up the Process and Reducing Disruptions

The probate process can take weeks, or even months, depending on the complexity of your estate. During this time, the future of your business might hang in the balance—employees could be left uncertain, business partners may be anxious, and operations might slow down.

A corporate will can help prevent this kind of disruption. By keeping your business assets out of probate, your executors can act quickly to transfer ownership and continue operations without unnecessary delays. This means the company you’ve worked so hard to build can keep moving forward smoothly, rather than getting caught up in lengthy legal procedures.

What If You Don’t Have a Corporate Will?

Dying without a corporate will can lead to some challenging scenarios for your business, especially if you want to ensure a specific succession plan. Here are some possibilities:

1. Primary Will Covers Your Business: If your primary will includes your business interests, those assets are subject to probate fees. While your business would still be passed along according to your wishes, it would come with an added financial burden.

2. No Will (Intestate Estate): If you don’t have a will at all, your estate—including your business—will be managed based on Ontario’s Succession Law Reform Act. This means your business could end up in the hands of a relative who may not be prepared or interested in running it.

3. Corporate Interests Not Addressed in a Will: If your corporate assets aren’t specifically mentioned, they could end up in the “residue” of your estate, treated as if you didn’t plan for them. This can lead to disputes and leave the company in a vulnerable position.

Is a Corporate Will Right for You?

Whether a corporate will is right for you depends on your business goals and the legacy you want to leave behind. If avoiding extra fees, keeping business matters private, and ensuring a seamless transition are priorities, then a corporate will could be invaluable. It’s not just about what happens after you’re gone—it’s about preserving what you’ve built and giving it the best chance to succeed, even in your absence.

Final Thoughts

Estate planning is deeply personal. It’s about caring for those you love and protecting what matters most. Your company is part of that legacy if you're a business owner. You’ve poured time, energy, and passion into building it—don’t leave its future to chance.

Creating a corporate will can be a powerful way to safeguard your business, minimize unnecessary costs, and ensure a smooth continuation of operations. Take the time to speak with an experienced estate lawyer to determine if a corporate will is right for you. After all, ensuring your business thrives even when you’re not there to steer it is one of the best ways to honour all the hard work you’ve invested.