When it comes time to create your comprehensive estate plan you will need to decide which components to add to your plan above and beyond the basics. If you are the owner of a small business or family enterprise, incorporating a business succession plan into your overall estate plan is crucial to the continued survival of your business should something happen to you. Only your New York estate planning attorney can help you with the specific of your business succession plan; however, a basic understanding of what one is and why you need one should encourage you to discuss including one with your estate planning attorney.
Getting a small business off the ground takes dedication, hard work, and perseverance. Keeping it afloat over the long haul is even more of a challenge. If you have managed to do both, don’t risk losing it because of our death or incapacity. The vast majority of small business fail when the owner becomes incapacitated or dies. The primary reason for these failures is failing to plan for the possibility of the owner’s death or incapacity. Take a minute to consider what would happen to your business if you were incapacitated in a tragic accident tomorrow. Who would take over the day to day operation of the business? Of equal importance, who would have the legal authority to do so? Who knows the ins and outs of your business well enough to run it? Now ask yourself what would happen if you died? Who would inherit the business? Does your intended heir even want the business? Are enough liquid assets available to cover the tax implications of your death or would business assets need to be sold? Finally, could your business survive being tied up in probate for weeks, even months? By asking yourself these questions you begin to understand why a business succession plan is necessary.
A business succession plan, in short, answers all of these questions and more. It can provide for the legal transfer of your business to a new owner. It can provide the necessary liquidity to cover death expenses. It can even provide for the automatic sale of your business should certain events occur. Basically, your business succession plan helps ensure that your business will survive without you should it be necessary to do so in the future.
If you have additional questions or concerns about business succession planning or estate planning in general, contact the experienced New York estate planning attorneys at The Law Offices of Saul Kobrick, P.C. by calling 800-295-1917 to schedule your appointment.