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

Do You Have A Business Will?

A Personal Story

I worked with a client who owned a thriving manufacturing company a few years ago. He’d spent decades building it from the ground up, pouring his heart and soul into every detail. But when I asked about his will, he admitted it hadn’t been updated since his kids were little.

When I asked about a business will, he looked confused. He had no idea what it was or why it mattered.

I explained how, without a corporate will, his business could end up tied in probate for months, costing his family unnecessary fees and causing major disruptions. I’ll never forget the look on his face when I told him how much probate fees could cost on a business worth $10 million—$150,000, gone.

That conversation changed everything for him. He went from thinking estate planning was just paperwork to realizing it was about protecting the legacy he’d worked so hard to build.

What Is a Corporate Will?

A corporate will, also known as a business will or secondary will, is a legal document explicitly dealing with your business assets. While your personal will covers things like your home and savings, a corporate will focuses solely on your company.

Why does that matter? Separating your business from your personal estate gives it the attention it deserves—without being bogged down by the probate process.

If you’re a business owner, think about it: You’ve spent years, maybe decades, building something that supports your family, employs people, and creates value. Why wouldn’t you take steps to protect it?

Why a Corporate Will Matters

Here are three reasons why a corporate will is essential:

1. Saving Money

Let’s be honest: nobody likes the idea of their hard-earned money going to unnecessary fees. But that’s precisely what happens when business assets go through probate.

In Ontario, probate fees, officially called estate administration taxes—are calculated based on the value of your estate. For assets over $50,000, the cost is $15 per $1,000.

That means for a $10 million business, probate fees would be $150,000. That money could stay in your family or help keep your business running smoothly.

Thanks to a key court decision in 1998, assets held in a corporate will can avoid probate altogether. This is a huge advantage for business owners, and one that could save your family significant financial stress.

2. Protecting Your Privacy

Probate isn’t just expensive—it’s also public. When a will goes through probate, it becomes a public document, meaning anyone can access the details of your estate.

For business owners, this can expose sensitive information about your company, from its value to who inherits it. A corporation will keep these details private, shared only on a need-to-know basis.

3. Avoiding Delays

The probate process can take months, leaving your business in limbo. Employees wonder what’s next, partners grow anxious, and operations can slow down.

A corporate will allows your executors to act quickly, transferring ownership and ensuring your company keeps moving forward without unnecessary delays. It’s about preserving the momentum you’ve worked so hard to create.

What Happens Without a Corporate Will?

Not having a corporate will can create a cascade of problems:

• If your business is included in your personal will, it’s subject to probate fees.

• If you don’t have a will at all, Ontario’s Succession Law Reform Act decides who gets what. Your business could end up in the hands of someone unprepared—or uninterested—in running it.

• If your corporate assets aren’t explicitly mentioned, they might fall into the residue of your estate, leading to disputes and potential vulnerability for your business.

Simply put, not having a corporate will leave too much to chance.

Is a Corporate Will Right for You?

Here’s the thing: A corporate will isn’t just about money or legalities. It’s about protecting your hard work, supporting the people who rely on you, and ensuring your business can thrive even when you’re no longer at the helm.

If avoiding extra fees, keeping business matters private, and ensuring a smooth transition are important to you, a corporate will could be the right step.

Final Thoughts

Every business owner I meet has a story. They’ve built something from nothing, overcome challenges, and created something meaningful. But without the proper planning, that story can be left unfinished.

A corporate will is one way to protect the legacy you’ve worked so hard to build. It’s about more than dollars and cents. It’s about preserving what matters most.

If you’re a business owner, I encourage you to take the next step. Speak with an estate lawyer, review your plans, and make sure your business is set up for success, even when you’re no longer there to guide it.

Because the future of your business and your legacy deserves to be more than an afterthought.