Business Succession Planning Attorneys
Determine If & How Your Company Will Go on Without You
No one is immortal. Business owners will inevitably pass away, leaving their business shares up for grabs. That is why your business – just like you – needs an estate plan that determines what happens when principal owners pass away.
Rather than having your business shares go into valuation and auction, which can have a detrimental effect on your business structure as a whole, you can prepare and execute certain agreements that allow your partners to buy out your business interest with less complication.
The three major benefits to succession planning for businesses are:
- Assurance of an agreeable price for a deceased partner's share
- Policy benefits will be quickly available to buy the deceased's share of the business, with no liquidity
- Succession planning allows for a timely settlement of a deceased partner's share of the business with minimal effect on a business' operation.
Every business should have an estate plan to ensure that matters, in the event of a partner's or business owner's death, go as smoothly as possible. A business succession planning attorney from The Presser Law Firm, P.A. can help you make necessary arrangements for what happens to your ownership in a business when you pass on.
Build a Plan to Keep Your Company Going
One common strategy involves purchasing a life insurance policy for each of a partnership's owners – whether through the business or personally – and naming your business or yourself as a beneficiary.
In that case, the proceeds of the insurance, in the event of a death, can go toward purchasing the deceased’s interest. This can avoid messy probate claims from the deceased’s beneficiaries and auction, potentially allowing the business to function uninterrupted.
Are Your Operating Agreements Ironclad?
The next thing The Presser Law Firm, P.A. can help you with is to make sure your operating agreements are bulletproof and dictate exactly what happens when an owner or member of the business dies. This way, room for interpretation is minimized and a potentially lengthy, costly, and destructive legal dispute can be prevented from arising.
Your Personal Estate Plan Is Key
Finally, make sure you have a personal estate plan that refers to consistent provisions of these agreements. The more layers of protection your business has, the better protected it will be. If you need help with building a business succession plan, personal estate plan, or making sure these two existing plans can work together, don’t hesitate to reach out to us for help!
Yes, You Can Lose Everything!
You may think that your wealth is safe and that you don't need protection. But don't delude yourself and accept reality — for every 60 minutes you spend making money, spend 60 seconds thinking about how to protect it!