Many people confuse estate planning with business transition . They are actually quite different.
According to a story on columbustelegram.com, estate planning involves the transfer of wealth and assets of an individual, both personal and business related, from one person to another person or entity.
Business transition involves the transfer of a business asset or entity from an existing owner seeking to exit, to new ownership. Typically, the transition occurs during the life of the existing owner. If it occurs after the owner dies, it is usually part of an estate plan.
There are many similarities between estate planning and business transition plans, but the greatest difference is in the timing. Estate plans consider the transfer of assets beyond the life of the owner, while the business transfer plan considers transfers during the life of the owner. They can actually work together in tandem.
If you have questions about estate planning, feel free to contact us for a consultation at (626) 696-3145.
