Is It Time to Think About a Business Estate Plan?
For many people, their business is extremely valuable to them, almost like a member of the family. So when it comes to estate planning, they may be left wondering how their company fits into their overall future goals. Depending on your unique vision, there is a way to create a business estate plan that will give you peace of mind. Some people choose to keep their enterprise within the family, others wish to sell the business, and still others may have another plan in mind. These things can be arranged to occur before or after your passing, and a qualified business estate planning attorney in Houston can help you do this.
A business estate plan is sometimes known as a “succession plan,” and it’s never too early to think about what you wish to do with your company after you retire, or after you pass on. Because there are many special considerations with businesses that wouldn’t apply to individuals, like certain tax obligations, don’t assume that your personal estate plan will cover all the bases. There are also other details, like instructions for new management, that should be included in your estate plan.
No matter the size and scale of your business, there may be benefits to either selling it or transferring it to a co-owner down the line. If you own a company with others, the latter is the more obvious choice, so that your legacy can live on and continue to grow. In this case, it’s particularly valuable to have a clear succession plan, outlining the transfer of rights and responsibilities, and removing your future liabilities. You may wish to have a strategy in place for appointing new management and advisors, training them, and delegating certain powers within the company structure. Additionally, you will want to put together a timeline for when this transfer will happen.
If you are a sole proprietor or have any kind of business that depends upon your involvement, selling or liquidating may be something to consider. Depending on your assets, including intellectual property, you may be able to set up some kind of acquisition to occur in the future. Or you may wish to close up shop altogether after you retire. No matter what your wishes are, it’s a great idea to talk with a business estate planning attorney in Houston, to make things legal and enforceable.
Want to learn more about succession planning? Reach out to Sutherland today and ask for your free consultation.