A well-thought-of estate plan protects your family during unexpected events that can put their future and security in danger. Also, if you have a business, ensure your estate plan addresses its future. This way, your family will not face any issues or hardships when unforeseen events impact your business operation. Also, it makes sure your family gets maximum benefits from your business investment. A New Jersey estate planning lawyer can help you with the processes involved.
What to Expect When Something Happens to You and You Own a Business
If your business is solely owned by you, it may instantly stop operating when something happens to you. However, what about your business assets, customers or clients, employees, accounts receivables, and payables? Perhaps a family member or employee can continue to run the business, but do they have the legal authority?
If you have several co-owners of your business, the problems can become more complex. It will be hard to determine who gets the business interests and whether or not your family can get your interest and take part in the business. Because of these possible issues, you must determine what happens to the business you own when an unexpected event makes it impossible for you to fulfill your business-related duties. This is where your estate plan should address this.
How Does a Business Succession Plan Work?
Your estate planning attorney will recommend that you have a business succession plan because this addresses different important considerations. It offers solutions for what to expect from your business when you won’t be able to fulfill your role anymore. Your attorney can help you navigate through each vital decision that impacts your business operation and family. It is imperative to consult with a lawyer who specializes in both business law and estate planning. Keep in mind that any decision you may make will affect your business structure and other operational concerns like business insurance and taxation.
If you have a succession plan in place, there won’t be confusion in terms of who will run your business. If you own a family business, designate your family members’ roles and responsibilities ahead of time to avoid divisive disputes when somebody needs to assume your duties.
If you own the business with other people, ensure your co-owners decide about business continuity when something happens that leads to a co-owner not being able to perform their responsibilities. Your attorney may recommend considering buy-sell agreements, which work by allowing a business co-owner to buy the interest of a deceased owner.
