Preparing one’s future is an incredibly important part of life, especially if you own a business. Having a business succession and estate plan prepared for the future is of the utmost importance to protect the business you worked hard to create. By creating these plans you will allow your children or any designated heirs to acquire your business as you desired. If you are wondering what steps you can take to ensure your business passes to any designated heirs, contact a knowledgeable Montgomery County Estate Planning Attorney who can help you protect your legacy.
How does a business succession plan help ensure my business passes to my children?
A business succession plan is essential to the sustainability of a business. Unlike estate planning, business succession plans focus on the strategy that will allow a business to operate effectively after it’s passed on. Business succession planning determines and outlines who will acquire responsibility for the business after retirement, death, or incapacity. A business succession plan is intended to be a guide, your business must be protected if anything unexpected happens to you. Running a business is extremely complex and there are many aspects to cover. Having a business succession plan will ensure your children or any designated heirs assume your business.
How does an estate plan help ensure my business will pass on to my children?
An estate plan protects all of your property and other personal assets after you’ve died or become incapacitated. With an estate plan, your property and assets will be distributed to those whom you desire to receive them. An estate plan protects your designated beneficiaries. It ensures that your property (business) will be properly handled as you’ve dictated. By creating an estate plan, you will have full control over what happens to your business.
What is the difference between a business succession plan and an estate plan?
A business succession plan should allow the continuity structure of your business, while estate planning allows the opportunity to carry out your wish for all your assets during your lifetime. A business succession and estate plan will allow you to dictate what happens to your business. Business succession and estate plans should be aligned. It is always better to plan. If you own a business and want to ensure it will pass to your children (or designated heirs), it is essential to have both a business succession plan and an estate plan. This will help transfer your assets and ultimately protect the legacy you’ve worked hard to establish. If you have any questions about making sure your children or any designated heirs acquire your business, reach out to an experienced Montgomery County Business Law Attorney.
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Our firm has experience with matters of estates & elder law, business law, tax law, and litigation. Contact JD Katz, PC today for assistance.