Estate Planning for Business Owners

Business owners know the hard work, determination, and attention to detail that goes into building a company. A successful company, especially a family-owned one, may be an important component of an individual’s legacy.  This is just one reason that estate planning is so important for business owners. Thoughtful estate planning for business owners also has great impact on their legacy because properly drafted estate plan documents may help keep the company running smoothly. Fortunately, there are estate planning tools for business owners.

Business Succession Planning

Buy-Sell Agreements tell a company with more than one owner how to handle a co-owner’s interest when that person’s involvement has ended. Provisions in these agreements may:

  • provide other owners the opportunity to buy the interest before other buyers;
  • indicate how to calculate the value of the ownership interest;
  • state how the partners will pay for the interest; and
  • restrict who can buy an ownership interest in the company.

These agreements can be negotiated when operational documents are signed or during the company’s existence. They can also be prepared as one component of a business owner’s estate plans.

Traditional Estate Planning Documents

The business succession plan should be designed in conjunction with other estate planning documents to avoid confusion. When a business owner drafts Wills, trust, and durable powers of attorney with an attorney’s assistance, business concerns should be taken into consideration. For example, if a business owner leaves his spouse everything in his Will, but fails to mention his business succession plans, chaos and litigation could ensue. The company could be neglected or mismanaged while heirs and business partners try to work out the continued operation of the company or how to buy out the deceased partner’s interest. Of course, this is not ideal for anyone involved.

Get the Advice You Deserve.

Make sure your business plays a part in your estate planning. John Mangan is an experienced Florida estate planning attorney who has been board certified in Wills, Trusts & Estates by the Florida Bar. At Law Offices of John Mangan, P.A., we have developed business succession plans for business owners across the state of Florida. Call us at 772-324-9050 to set up an appointment or use our Contact Form.

ADDITIONAL RESOURCES:

3 Essential Tools For Business Estate Planning
3 Reasons To Review Your Estate Planning Now
7 Damaging Misconceptions About Florida Estate Planning
Avoid The High Cost Of Bad Estate Planning
Business Succession: An Important Part Of Your Estate Planning
Diy Estate Planning: Is It Worth The Risks?
Estate Planning 101: Five Essential Steps In Creating A Living Trust
Estate Planning 101: How To Have Difficult Conversations With Your Loved Ones
Estate Planning 101: If You Own Firearms, Consider Creating A Gun Trust
Estate Planning 101: The Advantages And Disadvantages Of An Irrevocable Trust
Estate Planning Basics: Why Avoiding Probate Is Preferable
Estate Planning Beyond The Will: The Importance Of Powers Of Attorney
Estate Planning For Parents Of Children With Disabilities: Six Key Issues To Consider
Estate Planning: 3 Tips To Help You Begin
Estate Planning: Do You Have A Plan For Your Digital Assets?
Estate Planning: It’s Never Too Early To Begin
Estate Planning: Understanding The Role Of Executor
Four Disastrous Estate Planning Mistakes To Avoid
High Net-Worth Estate Planning: 5 Potential Methods To Help Minimize Estate Tax Liability
How Divorce Affects Your Estate Plans
Isn’t Estate Planning For The Elderly Or The Ultra Wealthy?
New Year’s Resolution – Time To Update My Estate Plan
Secure Your Legacy: Five Often Overlooked Questions That Must Be Answered By Your Estate Plan
Top Estate Planning Excuses
What Are Some Of The Most Effective Estate Planning Strategies For Asset Preservation?
What To Bring When You Meet With Your Estate Planning Attorney
Why Do I Need To Hire An Estate Planning Attorney?

Written by John Mangan, Esq.

John Mangan, Esq.

I’m an attorney in Palm City, FL, and I serve clients throughout Martin County, including Stuart, Palm City, Hobe Sound, and Indiantown, as well as those in St. Lucie County, the Treasure Coast, Palm Beach County, and other parts of Florida. The Law Offices of John Mangan, P.A., is an innovative firm providing estate planning services to clients in Florida. We focus primarily on wills, trusts, asset protection, guardianship, and probate administration.