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 Palm City 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.
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:
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.
The business succession plan should be designed in conjunction with other estate planning documents to avoid confusion. When a business owner drafts a will, trust, and durable power 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.
Make sure your company’s interests play 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 today to set up an appointment or use our Contact Form.