Business Succession Planning
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.