Business owners with no will can damage company in case of death: Pippa Colman
A business owner without a will can have catastrophic consequences in a case of death. Pippa Colman explains why.
Opinion
Don't miss out on the headlines from Opinion. Followed categories will be added to My News.
About 19 out of 20 people who come into our legal practice don’t have a current will.
There are many reasons for this.
They have never had a will.
They have married after making their will.
They are separated (and now hate their executor or principal beneficiary).
They don’t think they will die – seriously, people talk to us about “if I die….”
Because we know of the consequences of death without a proper will, we immediately take instructions for a simple will, which we sometimes prepare and have signed on the spot.
Why is it important?
If a person dies without a will, then there is no one to take charge of their body and make decisions about the funeral and burial or cremation.
If there is a contest or no agreement among those left behind, unfortunately the answer may be an application to the court to appoint an administrator and directions about the disposal of the body.
Where there is no executor, the Uniform Civil Procedure Rules 1999 provide an order of priority of persons to whom the court may grant letters of administration.
Sadly, even though the parents of a deceased child, old or young, are the persons entitled to dispose of the body of their child, they may not agree, and yes, the court may have to decide for them.
This happens at a time when those left behind may be grief stricken and not have the funds to go to court.
It is possible that a family member, friend, priest or mediator will step in and help the parties reach an agreement, but that is by no means certain.
Amazing though it sounds, some businesspeople do not have a will.
The consequences of a single director or single shareholder of a company dying without a will are, quite simply, catastrophic.
The company is unable to operate.
Banks are unwilling to allow the operation of bank accounts.
Staff and suppliers cannot be paid.
The reputation and value of the company plummets.
An application to the Court for the appointment of an administrator is necessary, and this could take weeks or maybe months.
In the absence of any immediate relatives or other applicant to deal with the estate, the Public Trustee may step in and administer the deceased estate; this can also take months.
Where there is a will, there is certainty.
Pippa Colman is the founding director of Pippa Colman & Associates Law Practice
Expo 88 showed us that big events can pay off in the long run
The vibe in South Bank is pumping as the legacy infrastructure comes into its own for residents and visitors — so can something similar take shape in the Maroochydore CBD?
Read more
What Albo needs to do to dodge Trump’s tariffs
Anthony Albanese’s pitch to avoid Donald Trump’s tariffs is simple: we are not ripping anyone off. The President appears to have listened, but the PM has not convinced him yet.
Read more