A Corporate Will is a document created by a company or organization to outline their wishes for how the business’s assets should be managed after its founders have passed away. Unlike personal Wills, which are usually written by individuals and primarily focus on distributing assets, Corporate Wills are designed to ensure companies and organizations can continue meeting their goals and objectives after the founders have passed away.
The key differences between Corporate Wills and Personal Wills can be summed up in five primary areas:
- Nomination of Executor/Manager: A Personal Will allows an individual to nominate an executor who will manage the distribution of their assets, whereas a Corporate Will allows businesses to nominate a manager who will be responsible for managing the company’s affairs in the future.
- Guardianship: A Personal Will allows individuals to name guardians for any minor children they may have, whereas a Corporate Will does not provide this option as there would be no minors involved with a business or organization.
- Debts and Taxes: Personal Wills allow individuals to specify how any debts they may owe should be paid off, as well as how taxes should be handled; while corporate Wills mainly focus on providing instructions on how possible debts owed by the company should be paid off, along with information about taxes that may need to be addressed.
- Asset Distribution: As mentioned before, Personal Wills are mainly concerned with distributing assets after death; however, this is not the main purpose of Corporate Wills which instead aim to empower businesses or organizations so they can continue functioning after their founders pass away.
- Longevity & Complexity: Compared to Personal Wills, which tend only to cover short-term objectives and are generally straightforward in nature, Corporate Wills often require more complex planning over longer periods of time since they must address both short-term as well as long-term goals of the business or organization in question.
Overall, companies and organizations alike need to understand that there are distinct differences between Personal Wills and Corporate Wills when it comes time for them to write their documents – making sure that each document fulfils its own unique purpose is essential in order for businesses or individuals alike to achieve successful estate planning.
While it is generally recommended that everyone have a valid personal Will in place prior to passing away, it is especially important for companies to seek out legal advice from an experienced wills lawyer in Ottawa when preparing their corporate wills in order to ensure they are properly structured and adhere to all applicable laws governing corporations within their jurisdiction.
This website’s content or any blog posts or news are solely intended to be used for informational purposes and should not be considered legal advice. This article is meant only as a general guideline, which may not apply in all circumstances, so it is important to consult with an experienced Will & Estate Lawyer or Ottawa Wills Lawyer before taking action based on the information provided here.
If you need more information about Ontario Probate Matters, then don’t hesitate to reach out to Nirman’s Law for assistance. Nirman’s Law is Ottawa’s premier law firm for Canadian legal matters, offering both traditional in-person legal services and cutting-edge virtual services.