A recent consultation involved a UK-domiciled business owner in his mid-60s.
He owns multiple commercial properties. All are held jointly with a long-standing business partner. Most income flows through joint accounts. There are mortgages. There are personal debts. There is no Will.
This is far more common than people realise.
The surface problem
On paper, everything works.
Properties are producing income.
The partnership functions.
Families are not involved in day-to-day decisions.
Until death or incapacity.
That is where the real risk appears.
The hidden issues
Without planning:
- Executors may not be able to deal with jointly owned assets.
- Surviving partners may be forced into business with widows or children.
- HMRC may tax the gross value, not the true beneficial share.
- Islamic inheritance rules and English law collide.
- Up to 40% Inheritance Tax becomes payable.
Often unnecessarily.
Why a Will alone is not enough
A standard Will does not:
- Solve joint ownership with a business partner.
- Protect income flow.
- Prevent disputes.
- Reduce IHT exposure.
Control requires trust structures.
The trust conversation
In cases like this, there are usually two routes:
1. Lifetime trust planning
Certain property interests are placed into trust now.
Growth was removed from the estate.
Control retained through trustees.
Requires agreement with the business partner.
Upfront tax and ongoing compliance costs apply.
2. Will-based trust planning
No lifetime transfer.
Trust activates on death.
Spouse protected.
Children benefit later.
IHT deferred, not eliminated.
Neither option is “right” on its own. The correct answer depends on priorities, health, age, and partner dynamics.
The business partner question
One question changes everything: “What happens if one of us dies?”
If that has never been answered in writing, there is a problem.
The FLRR approach
We start with:
- A full asset and liability map.
- Identification of joint interests.
- Trust suitability analysis.
- Partner conversation planning.
- IHT exposure modelling.
Then we build layers, not quick fixes.
Because the most expensive estate plans are the ones that never happened.
