The First 72 Hours After a Business Owner Becomes Incapacitated or Passes Away

Beyond the emotional shock, there are often immediate responsibilities involving the business.

Understanding what steps may need attention in the first 72 hours can help reduce confusion and protect the business while longer-term decisions are made.

Step 1: Confirm Immediate Health or Medical Information

If the business owner has been hospitalized or incapacitated:

• confirm their medical condition with healthcare providers

• identify who has authority to make medical decisions

• locate any Power of Attorney for Personal Care

In Ontario, a Power of Attorney allows a designated person to make decisions if someone is unable to do so themselves.

If the business owner has passed away:

• confirm their medical condition with healthcare providers

• access an official copy of the death certificate (either through the hospital or funeral home)

Step 2: Identify Who Has Authority to Make Financial Decisions

If the owner is incapacitated, someone may need authority to manage financial matters.

Look for:

• Power of Attorney for Property

• banking access

• business signing authority

Without these documents, financial access may be limited until legal authority is granted.

If the business owner has passed away, you will need access to:

• An official copy of the death certificate

• Most recent will

After a business owner passes away, the named executor may need to apply to the court for a Certificate of Appointment of Estate Trustee (probate). This document gives them the official authority to:

• Access bank accounts and financial records.

• Manage or sell the business.

• Pay business debts and taxes.

Step 3: Stabilize the Business

In the first few days, the goal is stability, not long-term decisions. Immediate priorities may include:

• ensuring employees know what is happening (someone needs to communicate with them immediately)

• responding to urgent client needs (someone needs access to client contact details including name, email or phone)

• pausing services, production and/or delivery if necessary

• reviewing scheduled appointments or commitments (someone needs access to business documents including CRM, calendar, email, etc.)

Communication is critical during this period.

Step 4: Identify Key Advisors

Locate contact information for:

• the business or corporate lawyer / wills and estate lawyer

• accountant for the business

• financial advisor

• commercial insurance provider

These professionals can help guide next steps and ensure compliance with legal and tax obligations.

Step 5: Secure Access to Business Systems

If possible, locate information related to:

• email accounts

• payment systems (accounting and bookkeeping systems)

• scheduling platforms

• CRM platforms and client/patient contact details

• website access

• payroll systems

Without access to these systems, managing the business becomes significantly more difficult.

Step 6: Communicate With Clients Carefully

Clients or patients may need reassurance that their needs are being addressed.

However, communication should be respectful and controlled.

A simple message may include:

• acknowledgement of the situation

• temporary service changes

• when further updates will be shared

Note: Depending on the type of business, access to client, customer and/or patient contact details may be restricted. It is important to formally assign a business executor, administrator or HealthCare Information Custodian (HIC) while the business owner is mentally and physically capable. This person will be given access to client and patient contact details and will be solely responsible for communicating with clients and/or patients.

You can formally document the appointment of a business executor, administrator or HealthCare Information Custodian (HIC):

• In Your Will: Name the person(s) specifically as the executor/trustee for your business assets.

• In a Shareholders' Agreement: If you have a business partner, use a Buy-Sell Agreement to specify how your shares will be handled and who will represent your estate in selling them.

• Draft with Legal Counsel: Have a lawyer draft these documents to ensure they are legally binding and comply with local regulations.

Step 7: Avoid Major Decisions Immediately

In the first few days, avoid major decisions such as:

• selling the business

• terminating employees

• closing operations permanently

These decisions should be made after professional advice and careful review.

Why Preparation Matters

Many families discover during a crisis that they lack access to critical information about the business.

When business owners prepare in advance by documenting systems and contacts, it becomes far easier for families and advisors to navigate the situation.

Business contingency planning helps ensure that the business can continue responsibly or transition in a structured way.