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Why Maryland Small Business Owners Need a Will

Writing a will is a good idea for anyone, but it’s especially important if you own your own business. Here's why:

What a Will Allows You to Do

You know that in a will, you state your wishes about who you want to inherit your property, divvying it up however you choose. Those wishes are legally binding. (Though in most states, a spouse who’s unhappy about his or her share can go to court and claim a certain share, commonly about one-third of the estate. That rarely happens.) If you don’t leave a will with directions about who you want to own the business, state law does it for you--close family members will receive everything. The rules vary from state to state, but generally surviving spouses and children share the estate. If you’re not married and don’t have offspring, assets will go to your parents or siblings.

That means your company could well end up in the hands of your spouse and children—even if your children are teenagers, or they’re from a prior marriage and don’t get along with your spouse, or your family doesn’t have any idea what to do with the business. Far better to make a thoughtful choice about who should inherit, and in what shares. You especially don’t want an interest in a valuable business passing to young children without a mechanism in place for an adult to manage it.

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