Planning a Worry-Free Business Succession
One of the most valuable assets in an estate plan is often a business. If you have full or partial ownership of a business, you need to plan how your ownership will be transferred to ensure smooth business operations. Even if you choose to sell your business after death, you need to include these provisions in your estate plan to avoid any conflicts after your passing.
The Law Offices of Naiman & Naiman, P.A., has helped numerous Maryland business owners plan the fate of their businesses. While people come and go, a business can be a lasting legacy to pass down from generation to generation. Including it in your estate plan can be complicated, however, as you have to take into account the interests and desires of your family as well.
Ensuring that Every Child Is Treated Fairly
Successful estate planning ensures that every heir and beneficiary is treated fairly. If your business comprises the majority of your estate and you have multiple children, you may be tempted to give them each equal ownership. However, it is often best for the business (and the children) to pass ownership to those who are willing and able to manage the company themselves.
To ensure that everyone is included in your estate plan, we can take advantage of other options as well. You could plan to sell the business, splitting the money between your children. Another option is to name the children not receiving business ownership as the beneficiaries of your life insurance, so they receive something of relatively equal value. You could also use your life insurance policy to generate capital to buy out deceased shareholders’ interests, giving you more flexibility in how you transfer ownership.
Our attorneys have extensive experience finding creative solutions to business succession issues and can help you explore your options. To schedule a confidential consultation with our lawyers outside Baltimore, call 410-504-1113 or fill out our contact form.