Estate Planning for Business Owners

Owning a business requires a lot of forethought … not just in terms of market trends and finances, but entrepreneurs must also have contingencies in place for various scenarios. Perhaps you started your business as a young, single person, but your business has grown since then, and you now have partners. And perhaps your family has grown as well, and you now have a spouse and children of your own. Estate Planning for business owners is a hybrid subspecialty, combining estate planning + business law. 

Taking Care of Business & Your Family

Planning for the future of your business may look differently depending on whether you have partners, and whether your business is privately or publicly held. Fidelity provides some helpful information to consider as you begin the planning process. If you have partners, you may want to consider having a buy-sell agreement, in which provisions are made for the surviving partners to purchase your share of the business, rather than leaving it to a member of your family who may not be experienced or may not have any interest in running the business.

Your succession plan may have a dual set of instructions – one set for everyday management of the business and one set for ownership. Your plan may have provisions for an untimely death, but it may also include a succession plan in the event of your retirement. A good plan will cover all possible scenarios, including divorce or death of a spouse, what your spouse was set to inherit, succeed, or otherwise manage or maintain ownership of your business.

You should also consider the value of your business at its inception and its potential value. A business attorney, accountant, or another expert in your industry may be able to assist you with valuations. Establishing a trust may also be in order, to help mitigate probate and taxation concerns.

Gray Law Group handles both estate planning and business law so contact us today to schedule your consultation. Do not put off the well-being of both your business and your loved ones.