September 2020 - Garton & Harris

More than half of those living in British Columbia do not have an estate plan. It may be easy to list the reasons why, including the fear of facing their mortality, misconceptions about the purpose of an estate plan and, of course, the cost. Therefore, it might seem that those who choose do-it-yourself kits to create their wills have an advantage over those who die without an estate plan in place. However, some financial advisors strongly disagree.

A DIY will kit offers a will template for a nominal fee, and some websites even offer free downloads. The problem with a one-size-fits-all will is that every situation is unique. No template can cover every contingency or provide protections for special concerns that every family has. Additionally, DIY kits provide little to no assistance for those who may have questions. Even worse, many who use such kits may not even know what questions they should be asking.

Without knowledge of probate laws, someone using a will kit may not realise he or she has made a small but significant mistake. The ones who will deal with that mistake are those left behind after the will maker dies. In some cases, families are left with no recourse when a DIY will contains an error that results in a very different outcome from what the deceased would have wanted.

Wills can address far more than who inherits the assets in an estate. Those in British Columbia who have children, blended families, special needs or unique assets, among other things, would be wise to seek professional assistance when they decide to create their estate plans. Putting off estate planning is risky, but DIY wills may carry an even greater risk.

Buying a business is a major commitment in terms of the time, money and personal resources it takes to take on this type of transaction. As such, it is critical to prepare for the possible obstacles and complications that can arise.

If you are an entrepreneur wanting to buy an existing business, you should know what to watch out for before signing a purchase agreement and what could go wrong.

You and the seller could clash in your motivations

It can be emotional for owners to sell a business. Some sellers have no choice but to sell; some companies have been run by the family until now. Consider these details when it comes to discussing your plans for the business.

While you should not lie to the seller, you can give measured responses and explanations of your plans. As a buyer, you may have no obligation to preserve specific business elements preferred by a previous owner. Still, it would be wise if you did not insult or minimize the seller’s contributions.

You may not see all the liabilities

There are situations in which prospective buyers fail to see certain problems or blind spots. Such oversights could stem from overconfidence or the misinterpretation of data.

It is also possible that the seller could be covering up inadequacies or flaws in the business.

As such, conducting due diligence is vital for any buyer. This article provides some tips for this process, though it can also be wise to call outside professionals for help and allow room for objectivity.

The sale moves too slowly or too quickly

Again, buying a business is a significant commitment. Dragging out the process or rushing through it could wind up costing a lot of money and creating complications for the buyer.

If you are in a position to buy a business, you should progress at a comfortable speed. Keep things moving to minimize changes in the company, the economy and financial resources, but be ready to take a step back if something seems amiss.

These complications can arise on top of the logistical challenges that come with complicated transactions. As such, preparation, legal guidance, and careful speculation can be critical components of successfully navigating this process.

Are do-it-yourself wills worth the risk?

What can go wrong when buying a business in Canada?

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