What happens to my business ownership if I die without a will in Ontario?

Business interests — whether shares in a corporation, an interest in a partnership, or a sole proprietorship — are assets that form part of your estate when you die. Without a will, they pass to your heirs under the intestacy rules, the same as any other asset. This can have serious unintended consequences for the business itself.

Your heirs may inherit your business interest without having any knowledge of, interest in, or ability to operate the business. Depending on the business's corporate or partnership structure, the transfer of an ownership interest may trigger shareholder agreement provisions, right of first refusal clauses, or other terms that complicate or restrict the transfer.

Business succession planning usually involves a combination of a will, a shareholder or partnership agreement, and potentially life insurance or buy-sell arrangements. Dying without any of these in place can leave business partners in an uncertain legal position and the business itself in limbo while the estate is administered. An estate lawyer working alongside a business lawyer can help develop a plan.