Who will run your business if you are unable to? Who will inherit your business someday when you die? Putting a business succession plan in place is a wise step for any business owner who cares about the future of the business. A succession plan can enable a company to continue providing benefits to the owner and the owner’s family long after control of day-to-day operations is relinquished.
If a business has been transferred without a succession plan after the owner’s death, a Palm City business succession lawyer can assist in enabling the business to continue functioning at an optimal level. An experienced probate attorney can explain the options and walk through the evaluation process to help determine the right strategy to meet desired goals.
Under state law, an individual’s ownership interest in a business is treated as personal property which can be transferred to beneficiaries through a will or trust or to heirs through intestate succession. However, a business succession plan encompasses much more than simply determining who gets ownership interest in a business.
When a business operates successfully under certain leadership and that leadership changes without preparation, operations can grind to a halt. It can be difficult to know who should be making key decisions, as well as determining who should be making key decisions. If others disagree, disputes may arise. However, a business succession lawyer in Martin County can devise a plan to prevent ambiguity and allow for a smooth transition to keep the company on track.
There are two different types of business plans which can merit a positive outcome in both the short term and long term: retention plans and buy-sell business succession plans.
Business plans that involve retention planning assume that family members would retain control of the business and all business assets. A retention plan is often created at the same time as the estate plan of the business owner. It may be possible to have the plan transfer ownership interests in a trust fund for the benefit of children or other family members.
By contrast, a buy-sell business succession plan arranges for the transfer of the business to someone outside the family, such as a business partner, employees, shareholders, or an outside entity or individual. A Palm City business succession lawyer can help devise an arrangement that minimizes tax liability with either type of plan.
Establishing a succession plan for your business could prove to be extremely difficult without the appropriate legal knowledge. But, a Palm City business succession lawyer can devise a plan on your behalf while you focus on the day-to-day operations of your company.
In addition, a skilled trusts and estates attorney can assist with interpretation or revision of an existing plan. To get started on your business succession plan, be sure to schedule a consultation with a skilled attorney.