British Columbia law allows the use of multiple wills to manage different types of assets. Owners of shares in private corporations often use separate corporate wills to address their business interests specifically. This strategy separates assets that require a grant of probate from those that do not. Private company shares generally fall into the latter category.

For professional services in corporate wills, call 778-907-9245 to discuss managing your company shares by establishing a corporate will.

By drafting a separate testamentary document, we can help you ensure that business operations can continue without the delays associated with court validation. This is a common approach among entrepreneurs who want to maintain privacy and reduce the financial burden on their estates.

What Is the Function of a Secondary Will?

A secondary will is a legal instrument that serves to bypass the probate process for certain types of property. In British Columbia, the Wills, Estates and Succession Act governs the distribution of estates. While a primary will covers real estate, bank accounts, and personal property, a corporate will directs the distribution of shares in closely held corporations. Directors of many private companies permit the transfer of shares to beneficiaries without the need for court-certified probate grants. This efficiency allows the executor to exercise voting rights and manage company affairs immediately after the testator (the person who made the will) passes away.

Minimizing Probate Fees

Reducing provincial taxes is a primary motivation for using dual wills. British Columbia calculates probate fees based on the total value of assets passing through the primary will. You can find current tax rates and fee structures within the Probate Fee Act. By placing high-value private company shares in a secondary will, you can effectively remove those assets from the taxable estate. This strategy can help ensure more of the business value remains intact for your heirs.

Maintaining Business Continuity

Most businesses require constant oversight and decision-making. A vacuum can occur if the only will governing company shares must go through the court system. Until the court issues a grant, the executor lacks the formal authority to make critical business decisions.

A corporate will gives the executor immediate power over the shares, which may be vital for any of the following purposes:

• Approving payroll and operational expenses
• Fulfilling contractual obligations with vendors
• Managing sensitive corporate records and filings
• Appointing new directors to the board

Preserving Privacy and Confidentiality

Probate is a public process. A will that is probated becomes a matter of public record. Anyone can view the contents and the value of the assets involved. Business owners in Langley may prefer to keep corporate structures and share values confidential. Typically, corporate wills do not need to be filed with the court. This lack of public disclosure keeps a private company’s internal details from competitors and the public.

What Are the Legal Requirements for Multiple Wills?

Valid multiple wills require precise drafting. The primary will and corporate will must work together without revoking each other. Each document must clearly define which assets it governs, and the testator must ensure the executors named in both wills can coordinate effectively. British Columbia courts have recognized the legitimacy of this practice, but the documents must meet legal requirements.

Coordination with Shareholder Agreements

Many private companies have shareholder agreements that dictate what happens to the shares upon a member’s death. A corporate will must align with existing corporate documents. It is essential to review shareholder agreements to ensure testamentary instructions do not conflict with buyout provisions or rights of first refusal. In a conflict, the terms of the shareholder agreement often take precedence over the will. Our lawyers can help you sync these documents to prevent litigation between the surviving shareholders and the estate.

Executor Selection for Corporate Interests

While the executor of a primary will may deal with personal items and real estate, a corporate executor handles financial statements and board meetings. The person chosen for this role should have a basic grasp of business operations. You may name the same executor for both wills or choose a business partner or professional for the corporate duties. This selection can affect the business’s long-term stability.

Estate planning is an ongoing process. You may need to update a secondary will after changes in tax laws or corporate structure. Our Lawyers at Milestone Real Estate Lawyers have more than half a century of combined experience. Call us at 778-907-9245 to discuss managing company shares through a corporate will.