Leaving behind a business that you worked hard to create and grow is a part of life few wish to contemplate. However, doing so without a plan could create more problems for your life’s work. Planning for business succession in Palm City in this regards is necessary if you wish to leave behind a stable enterprise. However, there are many options available to you and your business that you may not be aware of. This is easily remedied with the help of an experienced attorney.
Many businesses are flying blind, so to speak, and not aware of the consequences to the business if one of the owners or managers were to die. Planning is essential to the future stability of the company. Business succession planning is the process of planning for the future ownership of a business when the owners eventually exit, whether through death, incapacity, sale of the business, and many other events.
In the absence of any planning, a business ownership interest must pass through probate upon the owner’s death. Probate can be time-consuming and lengthy, not to mention public in nature. As a result, substantial delays may be experienced by the business in accessing bank accounts, for example, which can grind a business to a halt. The business owner should speak to a qualified attorney to look at options for the future of the business. One of those options might involve the owner holding his/her interest inside of a trust. Because assets owned in trust at death avoid probate, the use of a trust may allow a business owner’s interest to pass more smoothly to beneficiaries. A little planning for business succession in Plam City goes a long way.
Instead of planning alone, a person should consider hiring an estate planning and business succession lawyer during life to plan for the future of the business in the event of death. The sooner the better as the future is never guaranteed.
The Martin County probate process can be particularly cumbersome when one of the assets of the estate is an ownership interest in an active business. Weeks may elapse after the owner’s death before a personal representative can be appointed. During that time, bank accounts may not be accessible, which can pose a tremendous threat to the viability of the business. Any business must be able to continue to deposit payments and pay vendors on a regular basis, so a freeze in that process can really stymie a business. In addition, there may be no duly appointed person to sign contracts on behalf of the business until a personal representative is appointed. For these reasons, it is particularly important for business owners to consider probate avoidance techniques during life.
Planning for business succession in Palm City is often a necessity. Avoiding planning often leads to disasters for businesses. Instead of placing your organization in jeopardy, work with an experienced business succession lawyer who can help you account for probate. Call today.