What Happens to My Business If I Die or Am Incapacitated?

It’s the conversation most small business owners avoid and delay but it’s better to address the practicalities.

Will someone know how to log in, who to notify, what to do with the orders, invoices, or clients?

If you don’t have a plan, your business could grind to a halt overnight leaving loved ones with confusion, stress, and possibly debt and employees at a loss to know how to cope.

Create a ‘What to Do’ document
Call it your Emergency Business Manual. Keep it simple but thorough.

Include:

• Key contacts (accountant, suppliers, landlord, clients)

• Logins and passwords (store securely using a password manager)

• Instructions for accessing bank accounts and invoices

• Ongoing projects or subscriptions

• Any debts or financial obligations

Nominate someone you trust
This might be a family member, business partner, friend or fellow trader. Make sure they:

• Know where your emergency document is

• Have your permission (and legal ability) to act if needed

• Are willing to step in temporarily

Update your will
If you’re a sole trader, your business assets are part of your estate. If you’re in a partnership or company, it’s more complex.

Make sure your will:

• Names an executor

• Reflects what you want done with your business

• Aligns with your business structure

✅ Use a solicitor or check government guidance:
Making a will – GOV.UK

Consider a business continuity clause
If you’re in a partnership or have staff, make sure your contracts and agreements explain what happens if someone becomes incapacitated.

✅ Business Continuity Planning – FSB Guide

Think about insurance
Products like critical illness cover, Income protection or business continuity insurance can help keep things afloat while you recover or provide for loved ones if you don’t.

Speak to an independent adviser who understands micro business realities.

Review your digital footprint
So much of business is done online now. Without logins, your family or executor may not even be able to shut things down let alone manage them.

Use tools like:

• Google Inactive Account Manager

• Password managers like LastPass or 1Password

Talk about it
t’s an awkward conversation to instigate, but it’s better to have it before the crisis hits. Your family or colleagues may not want to bring it up but they need to know your wishes. You owe them that.

Peace of mind isn’t just for you. It’s for everyone you might one day leave behind.