What will happen to your business when you die or become incapacitated? If you haven’t taken the time to put together a succession and estate plan, your business might lose momentum and become unprofitable while the leadership and ownership of your company gets worked out in probate. Even worse, your estate may have to sell the business or its assets in order to pay estate taxes.
At the very least, a business owner should execute a last will and testament and a power of attorney. If properly designed with your succession plan, this will help eliminate questions and disputes about ownership of the company and should speed up the process of probating your estate.
However, for many business owners, setting up a trust is a better alternative than relying solely on a last will and testament. A trust can allow a business owner to pass the benefits of the company to loved ones without incurring the estate taxes that might apply if the company is part of the decedent’s estate. Further, a trust can enable a business owner to control the way the business is owned and managed after death.
Proper estate planning is essential to ensure that your business will be owned, controlled, and managed according to your vision after your death. Austin Business Attorney James Blake advises business owners in succession plans, wills, trusts, and estate planning, and will be happy to consult with you to develop a plan that fits your needs.
