Business owners have unique issues when it comes to planning their estate. Often family businesses are the most valuable assets the family owns. It is difficult to plan for the distribution of the company to the kids, particularly in a situation where not all kids are involved in the business. A proper estate plan for a business owner incorporates traditional estate planning documents, like wills and trusts. It also incorporates documents specific to the business – like partnership agreements and buy/sell agreements.
These documents provide probate courts and all other parties with specific instructions for what you want to happen to your company at some point in the future. This may include a sale, transfer to a new owner, or orders to dissolve a business entity. In addition, these plans could provide for a structured retirement in the future or even protect your company in case of a sudden accident or illness.
A Cranberry Township business succession planning lawyer is here to work with you. Our estate planning attorneys could describe the purpose of a business succession plan, work to understand your unique needs, and draft plans that hold up in court.
Most people’s conceptions of estate plans include wills or possibly trusts. However, planning for the transition of a small business can be a complex issue. We need to consider the organization’s current financials and the unique tax effects of ownership transition.
Don’t leave your life’s work to chance. Under Pennsylvania Consolidated Statute § 20-2010 et seq., a person who dies without a will requires intestacy. This means that the probate court will distribute that person’s assets to their spouse, children, or parents, depending upon their specific situation. If a business succession plan does not exist or a will does not mention business assets, a probate court may apply these rules resulting in the need for an untimely sale or liquidation. A Cranberry Township attorney could help create a business succession plan that avoids this messy outcome.
Building a successful business requires years of hard work and dedication. Protecting that achievement requires planning in the event of a sudden emergency.
An attorney in Cranberry Township could draft business succession plans that leave instructions in case of a disaster. Sudden accidents can result in injuries that leave a person unable to retain control over a company. Similarly, the sudden onset of an illness could render a business leaderless. Comprehensive business succession plans can leave instructions for what to do if a sudden catastrophe occurs.
A person’s business assets, whether they be shares in corporate stock, a stake in a partnership, or a sole proprietorship, are a valuable part of an individual’s estate. As such, it is best to develop estate plans that cover your wishes for these assets in the event of your death or sudden retirement.
Contact a Cranberry Township business succession planning lawyer today. Our team could help you identify your needs, suggest planning options, and draft documents that provide the necessary protection for your company.