On behalf of Kadish & Anthony Law Group posted in Estate Planning For Business Owners on Friday, March 1, 2019.
All adults must ensure they have a suitable estate plan that outlines what their wishes are when they pass away. There is more to think about for people who own businesses. On top of the basic estate plan components like a will, trusts, powers of attorney and living wills, there is also the need to take care of the company.
The way that you will handle your business’ needs depends on the type of structure of the company. If you have co-owners, you might have a buy-sell agreement or some other arrangement that will go into effect. You have to think about each way that the arrangement can impact the company, the co-owners and your family members.
In some cases, you will need a succession plan that covers who is going to take your place and perform your duties if you are unable to. When you are creating this plan, you need to think about training. You have the ability to choose who will take the company over, so you can work with them to train them on every aspect of the business.
Part of your succession plan needs to focus on how to retain employees and clients, despite the massive upheaval that might come from the implementation of the succession plan. It isn’t easy to think about how to do this, but remembering the core values of the company might help you decide what to do.
In all of these matters, you also have to think about tax implications and how you might be able to minimize the cost and time it takes for all of these transitions when you pass away. This can also help you as you shape your plans.