Estate planning lawyers can assist business owners in preparing for a smooth ownership and inheritance transition process for their company after they pass on.
There are many critical factors to consider when it comes to estate planning. In addition to preparing for the management of your property and assets, there may be other components of your financial portfolio to consider including businesses or investments. In fact, many families have spent most of their adult lives building up a successful business. If you own a business, it is imperative that you create an estate plan that includes provisions for the management and transfer of ownership following your death. Otherwise, assets and property related to the business may end up in probate court and disputes regarding ownership or management could tie up the business for an undetermined amount of time. This can have a negative effect on customers and employees and can be avoided by working with an estate planner to create a specific plan of action.
There are different aspects of a business to consider when creating a business estate plan. One of the most important requirements is to plan for the transfer of ownership. If it is a family business, you may already have an heir or relative who is prepared to assume ownership. If not, it is important to consider your options and wishes. If you are in business with a partner or corporation, it may be necessary to prepare a buy-sell agreement or to stipulate your wishes regarding the inheritance of stock holdings or other ownership/management situations. It may also be necessary to create an estate plan that addresses which family members will continue to have a legal say in the operation of the business and those who inherit financial interest only.
Business Assets and Management
Additionally, it is important to create a legal documents and a process that stipulates how and when business assets and ownership will be transferred. This can be done through a trust, buy-sell agreement, or transfer-on-death documents, to name a few. This way, the business is able to avoid being processed through probate court. Probate can be an expensive and drawn-out process and could potentially have a negative effect on business performance and growth during this period. By establishing a trust, one can dictate what assets are made available to heirs and under what conditions they can be transferred. A buy-sell agreement is useful should you decide to sell the business to a partner or other business investor upon your death and a transfer-on-death document can stipulate who will inherit your shares in a company without requiring the accounts to be processed through probate court first.
Now is the Time to Prepare
If you have not already consulted an estate planning lawyer to make a succession plan for your business, now is the time! After putting so much heart and effort into a company, it is important to ensure the ownership and inheritance process goes as smoothly as possible so your business can continue to thrive even after you have passed on.
Michigan Legal Solutions
Our experienced attorneys are committed to providing our clients with the guidance and support that they need to resolve their estate planning issues. With over five decades of serving clients in Southeastern Michigan, the attorneys of Michigan Legal Solutions (Seglund Gabe Quinn Elowsky & Pawlak, PLC) have the knowledge and resources to resolve your issues.
No two families are alike and our attorneys are qualified to handle every type of estate planning situation, no matter how confusing or complex it may seem. We stay up to date on state and federal laws concerning estate planning and the latest laws regarding Medicare changes, Medicaid changes or nursing home issues. Our attorneys will provide you with the guidance you need and the service you expect so that you and your family get the result you want and the protection that you deserve.
Michigan Legal Solutions
28345 Beck Road, Suite 401
Wixom, MI 48393
Phone: (248) 869-0030
Fax: (248) 869-0039