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.
Estate Planning and Probate Attorney, Manhattan Beach Local, Sports Enthusiast