What happens when a business owner passes away without a plan?
A company’s legal continuity is often tied to the health of its key partner.
But when that person passes away unexpectedly — and no will or trust is in place — the entire business structure can be paralyzed.
In Costa Rica, if a shareholder dies without naming heirs or assigning a legal representative, their shares become part of the estate. Until the probate process concludes, no one can legally act on behalf of the company. That means:
- No meetings
- No filings
- No representation
- No access to assets
We recently assisted the family of a young entrepreneur who had placed his personal property — including a house and a car — under the name of his company. When he passed away suddenly, there was no will. For months, his loved ones had no way to take decisions. The company couldn’t pay taxes, submit legal reports, or move forward in any way.
Eventually, the family was able to recover control — but only after a lengthy legal process that caused financial strain and deep emotional stress.
This outcome could have been avoided with a basic legal tool:
A will, naming heirs and an executor.
Or even better: a testamentary trust, providing more control, protection and continuity.
Because estate planning isn’t about control — it’s about care.
