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Owning a business may add another layer of estate planning that you must properly prepare for. This is regardless of whether you own a sole proprietorship, a partnership, a limited liability company, or otherwise. Continue reading to learn how your estate plan can cover your business and how an experienced Putnam County estate planning attorney at the Law Office of Andres D. Gil, PLLC can come to your aid.
How can an estate plan cover my business for when I’m gone?
Arguably the most comprehensive method for covering your business through your estate plan is by establishing a business succession plan. Essentially, a business succession plan is a type of business strategy in which you may pass your leadership responsibilities onto an employee, a group of employees, or otherwise one of your designated beneficiaries. The goal of this plan is to ensure that your business continues to operate seamlessly in the unexpected event that you, unfortunately, pass on. Without further ado, below are the contents that make up a business succession plan:
- A succession timeline.
- A list of potential successors.
- Formalized standard operating procedures.
- Your business’s valuation.
- How your succession will be funded.
It is worth mentioning that there are other estate planning tools you may adopt to cover your business. For instance, there is a living trust. With this, you may access and manage your business shares throughout your lifetime, until your desired successor receives these shares upon your passing. In addition, there is your life insurance plan. This may allow your existing business partners to buy out your shares. Or, it may allow your designated beneficiaries to receive enough liquidity if your business does not have enough cash flow.
How can an estate planning attorney help me?
As you may likely conclude yourself, there is no standard method for covering your business in your estate plan. This is why retaining the legal services of a seasoned estate planning attorney may be of benefit to you. That is, your attorney may help you navigate the different tools at your disposal, whether it be a business succession plan, living trust, life insurance plan, or otherwise. With this, they may offer a sound recommendation on which tool best fits your unique business model, unique beneficiary dynamics, and other unique external factors.
While they are at it, your attorney may determine how your business plan works with your personal estate plan, and offer additional support where needed. So when it comes to your business plan, there is no question that a skilled Putnam County estate planning attorney is the best fit for you. Please contact the Law Office of Andres D. Gil, PLLC at your earliest possible convenience. We will be awaiting your phone call.
