Conflicting wills in case of a small business
<p>Two business partners make a signed and notarized agreement that if either dies or becomes permanently disabled then the other inherits that share of the business.</p>

<p>One of the partners dies and is found to have a will that leaves all of his estate to his wife.</p>

<p>Both the business partner and the wife try to claim the share of the business owned by the deceased. How is this conflict resolved?</p>

<blockquote>
  <p>How is this conflict resolved?</p>
</blockquote>

<ol>
<li>By negotiation</li>
<li>If there are no ADR provisions in either document, by litigation.</li>
</ol>

<p>As to what result either option will give, that depends on:</p>

<ol>
<li>The negotiation skills of the parties,</li>
<li>What the documents actually say in detail,</li>
<li>When each document came into existence.</li>
</ol>

<p>It would depend on the exact wording of the agreement between the two business owners, and on some other things. If this is a contract between them, then the contract <em>may</em> come before the estate can be divided up. If it was supposed to be a contract that the second company owner relied on, and the first company owner was basically cheating on him by having this will, then the surviving owner might sue for damages. </p>

<p>Let's say the company is worth two million. They signed an agreement. Each owner would have thought that according to the agreement, one day they would be either dead (and not care about money) or owning a company worth two million, and not just half of it. If one takes actions to stop this from happening, I suppose the estate can be sued for damages. </p>

trusts-and-estates