The succession of your estate or business is the official transmission of the assets of a deceased individual to his or her successors or a transmission of a business from someone who is departing the company. In many of these circumstances, the individual may not be departing the business willingly and may have left due to death, disability or divorce.
The most important estate planning issues that should be considered by someone who owns a business include putting together a will, a trust, and health care directives for the purposes of the individual estate planning. However, when contemplating business succession, this must consider more complicated issues, such as what will happen after the person exits the company and what team members, if any, will be trained to step in and serve in a greater leadership role.
Because of the complex issues involved in establishing a succession plan, it is often one of the most overlooked aspects of running a business. The person who owns the business might be integrally involved in managing the company, but this can represent a significant disruption in the movement and revenue generating ability of the business if no succession plan is put in place. Scheduling a consultation with a knowledgeable business succession planning attorney is essential.