I own a business. My lawyer mentioned making two wills instead of one. Why would I do that?

In some situations, having two wills can save your estate significant money in probate fees.

Some assets require probate before they can be transferred to the executor. It’s up to the institutions that hold the assets whether they’ll transfer them without a grant of probate. For example, the land title office won't transfer real property without a grant. Banks also usually require it for accounts in the deceased’s name.

But other assets don't need probate. Private company shares can usually be transferred without a grant. The same goes for shareholder loans and certain other business interests.

With a single will, if your executor needs to get probate for even one asset (like your house), they must pay probate fees on all of your estate assets. Having two wills allows you to separate your assets: One will can cover assets that need to be probated. The other can cover assets that don't (like your company shares). This keeps your business assets out of the probate process.

Having multiple wills does add complexity, risk and costs to your estate planning. The strategy generally works best when you have significant business assets, two trusted people who can act as executors, and a low risk of wills challenges. Talk to a lawyer who specializes in estate planning for business owners. They can review your situation and help you decide if this strategy makes sense.