You may think about the future of your assets from time to time. That is, you might consider who will inherit your personal properties like your home and financial assets. But what about your business assets? Surely you cannot just lump those together with your personal property. How you approach an estate plan for your business and business shares may save your trusted loved ones from legal issues and headaches in the future.
Have a successor in place and the details ready
Your business’s success may depend on the smoothness of its transition into new hands following your death. The proper planning and investment of your efforts can turn your business into a multigenerational business. And, for business owners who control a share a partner, you will want to implement instructions to your heirs on the fate of your business share following your death.
Establish buy-sell agreements
If you co-own your business, it may help you to set up buy-sell agreements. These agreements are legal contracts that ensure your share is reassigned at retirement or death. You may have the reassignment or purchase tailored toward a family member or another co-owner.
Plan for continued liability insurance
Even when your business ends, there is still a possibility that prior business activities lead to a liability claim. Having insurance ready in the case of your business’s termination could greatly benefit you or your loved ones left in charge of business matters.
If you are a business owner and you have not established plans for the future of your business, you should consider doing so soon. Contact an experienced attorney or an otherwise qualified estate plan professional to learn more.