Wills & Estates Series

Estate Planning for Business Owners: Making Sure Your Company Fits Into Your Will

October 7, 2026 | Vernon, Armstrong & Lake Country, BC

The North Okanagan runs on small business. Family orchards and farms around Armstrong, trades and professional practices in Vernon, hospitality and service businesses that keep Lake Country humming through the summer: behind each of them is an owner who has invested years of effort. Yet many of those owners have an estate plan that barely mentions the business at all.

A will that says "I leave everything to my spouse" is a start, but a company is not like a bank account. It has customers, employees, contracts, and often co-owners, and it needs someone to keep it running the day after the owner is gone. This article looks at how a business fits into a thoughtful estate plan and what owners in Vernon, Armstrong, and Lake Country may want to discuss with their lawyer.

What Actually Passes Under Your Will

The first step is understanding what you own. If your business is incorporated, you do not own the trucks, the inventory, or the building. You own shares in a company, and it is those shares that pass under your will. If you operate as a sole proprietor, the business assets are your personal assets and pass directly.

This distinction matters because:

Shares can be dealt with as a unit. You can leave them to one person, divide them among several, or direct that they be sold.
Shareholder agreements may override your wishes. Many agreements contain provisions about what happens to a shareholder's shares on death, including mandatory buyouts or rights of first refusal for the other owners. Your will should work alongside those provisions, not against them.
Some assets sit outside the estate. Life insurance with a named beneficiary, for example, passes directly to that beneficiary and can be a useful tool for funding a buyout.

Choosing the Right Executor

An executor who is well suited to administering a family home and a few investment accounts may be overwhelmed by a business. Consider:

Does your executor understand the business? They may need to make decisions quickly, sign documents, and deal with banks and suppliers.
Should you name more than one executor? Some owners appoint a family member alongside someone with business experience.
Does your will give the executor the powers they need? Standard wills may not include authority to carry on a business, retain professional advisors, or vote shares. Your lawyer can include these provisions.

Who Should Receive the Business?

This is often the hardest question. Options include:

A family member who is already involved. Leaving the business to a child who works in it can be natural, but fairness to other children may need to be addressed through other assets or insurance.
Sale to co-owners or a key employee. A shareholder agreement or a separate buy-sell arrangement can set the terms in advance.
An orderly sale by the executor. Sometimes the best outcome for the family is for the business to be sold as a going concern, with the proceeds distributed under the will.
A trust. Where beneficiaries are young or where control and benefit should be separated, a trust established in the will can hold the shares for a period of time.

There is no universally right answer. The right one depends on the family, the business, and the owner's wishes.

Incapacity: The Plan Nobody Thinks About

Death is not the only event that can leave a business without a decision-maker. Illness or injury can do the same, sometimes for months. An enduring power of attorney allows someone you trust to manage your financial and legal affairs, including your business interests, if you are unable to do so. Without one, your family may need to apply to court before anyone can sign a cheque or renew a lease on your behalf.

For business owners, a power of attorney should be drafted with the business in mind, so that the attorney clearly has authority to act on corporate matters and to work with the company's other directors and officers.

Keeping the Plan and the Company Aligned

An estate plan and a company's own documents need to say the same thing. Things to review together with your lawyer include:

The shareholder agreement and any buy-sell provisions.
The company's articles, which may restrict share transfers.
The central securities register, so that your shareholdings are accurately recorded.
Beneficiary designations on insurance and registered plans intended to fund a buyout or equalize an inheritance.

Because these documents are prepared at different times, they can drift apart. A periodic review keeps them consistent.

Frequently Asked Questions

My business partner and I have no written agreement. What happens to my shares if I die?

Without an agreement, your shares pass under your will, which may leave your family as co-owners with your partner whether either side wants that or not. A shareholder agreement is strongly worth considering.

Can my will simply say the business should be sold?

Yes, although the will should give the executor the flexibility and authority to conduct the sale properly, and you may want to set out any preferences about timing or preferred buyers.

Do I need to update my will every time the business changes?

Not necessarily for every change, but significant events such as bringing in a new owner, restructuring, or a major change in value are good reasons to review the plan.

Is estate planning different for a farm?

Farm and agricultural businesses around Armstrong often involve land, equipment, and quota or supply arrangements, and they raise their own considerations. The general principles are the same, but the details deserve specific attention.

Clarity for the People Who Depend on You

Owners often put off estate planning because it feels complicated, and because the business always seems to need attention today. At Abbey Law Corporation, we help business owners across Vernon, Armstrong, and Lake Country think through these questions calmly and in plain language, so that the plan reflects what they actually want and the people who depend on them are not left guessing.

If your estate plan has not caught up with your business, we would be glad to sit down and help you bring the two together.

Need Estate Planning Support?

Contact Abbey Law Corporation to book a consultation.