Business Succession Planning

Obviously it is an important issue!  Many business owners have created a very successful business by working incredibly hard to develop something that is worth a fair amount of money.  Unfortunately, a lot of these same people have not implemented a succession plan.

Many of these same people do have an Estate Plan, including a well drafted Living Trust – obviously some do not – but it is silent regarding the business.  When planning ahead to protect the legacy that you have created, creating a thoughtful business succession plan is vital. Depending on the size and nature of the business, it may require the company's CPA, a financial advisor, an insurance professional, and an estate planning attorney. 

There needs to be a mechanism in place that provides for the orderly transfer of the business.  Some estate planning attorneys are recommending the creation of a special asset trust to manage the business immediately after the death of the owner of the business.  This allows for key business decisions to be made by individuals pre-selected by the owner.

An estate planning attorney with experience in business succession planning is essential to the smooth continuation of a “small” business.