Like the rest of your estate plan, your business succession planning component will be uniquely tailored to fit the needs of your business and to fit within your larger estate plan goals. There are, however, some common objectives you may wish to include in your business succession plan, such as:
– Designating of someone to take over the immediate day to day control of your business if you are incapacitated tomorrow because of a catastrophic accident or debilitating illness.
– Ensuring that everyone impacted, including employees, business associates, and family, is prepared to accept your designated replacement.
– Preparing the necessary legal documents to ensure that your designated replacement will have the necessary legal authority to step in and take over.
– Making sure that your family will continue to benefit financially from the success of the business in the event of your incapacity.
– Putting a plan in place for someone to take over permanently, or to sell the business, in the event of your death.
– Keeping the business out of probate if possible.
– Devising a plan to value your interest in the business at the time of your death.
– Preparing the next generation to take over the business if you plan to keep it in the family.
– Creating the most advantageous legal structure for the business.
– Anticipating the tax implications for the business in the event of your death.
– Making sure sufficient liquid assets are available to cover any tax debt that might be owed when you die.