Colin Wong
Leaving a gift to a company is unusual, though it can be done. Here is how it works.
In most states, anything with its own legal identity can receive a gift in a will. That covers a person, a trust, a nonprofit, and a company. A company counts because the law treats it as something separate from the people who own it.
Most people leave what they own to family, friends, or charities. A gift to a company is rare. There are a few reasons somebody might want one.
Why someone might include a company in their will
Support the family business
A cash gift to the family business is one way to support family members without naming them individually. Some people use it to give the business a bit of breathing room after they are gone.
Support someone in their business ventures
You may want to help someone close to you grow their business. Naming their company in your will is one way to do that.
Support a business partner
Where you have built a company alongside a partner, a financial gift is a way to make their path a little easier.
Support a favorite local business
Some businesses become community anchors, worth more to a neighborhood than the products they sell. A gift could help one of them keep going.
Things to get right
Name the company properly. Its full legal name, the state it is registered in, and its registration number if you have it. Two businesses can share a trading name.
Think about whether the company will still be there. If it has been sold, closed, merged, or renamed by the time you die, the gift can run into trouble. Some people name a person as a backup.
A gift to a business is not a charitable gift, so it is treated differently from leaving money to a nonprofit. Anything to do with tax is a question for a professional licensed in your state.
How to include a company in your will
You can name a company as a beneficiary when you write your will with EveryWill. Use the company's full legal name so there is no doubt about which business you mean.
Where you want to attach conditions to the gift, or where the business is a big part of what you own, people usually work with an attorney licensed in their state. What a company can receive, and how the gift is treated, varies from state to state, so check what applies where you live.
Writing your will with EveryWill costs you nothing. Charities cover the cost, and you can choose to leave a gift to one if it feels right.
The information provided in this article is for general informational purposes only and does not constitute legal advice. Laws vary by state. For advice specific to your situation, please consult a licensed attorney in your state.