When a business partner leaves the practice suddenly and there was no plan in place, this can cause unnecessary chaos and business disruptions.
Many business owners now recognize that changes could be just around the corner that require them to update their business succession plans. This is because possible tax proposals on the table mean that your current and existing strategies may not work. Many are turning to life insurance as an alternative form of planning during these uncertain times.
This can help you to provide overall business protection to meet your personal financial needs and to assist with your business succession plan. Buy/sell insurance is one such policy. When a company has several different owners, the partners should have a buy/sell agreement that determines what will happen to the ownership share of a partner who passes away or withdraws from the business.
With new tax law changes that could increase tax liability when it comes to transferring business assets, buy/sell insurance is one of the most important components that any company can have. This life insurance helps to support the financial cost for a business to comply with the buy/sell agreement after a partner passes away and for the company to pay for the related tax bill. For more information about strategies you can use for the purpose of protecting your business interests, you need the support of an experienced and dedicated estate planning lawyer.
Business succession helps you to ensure that the business is not negatively impacted by your next steps.
Need help figuring out your California business succession plan? Talk to our Pasadena estate planning lawyers today.