Every individual should have an estate plan to document their wishes regarding care or financial decisions in the future, as well as to determine what happens to their property when they pass away. California business owners, however, have an additional responsibility to incorporate in their estate planning. There are two key considerations for business owners to evaluate in their estate plan. These include:
- Who should run your business when you pass away.
- Who should own the business when you pass away.
While you might choose the same individual or people to answer both of these questions, it’s important to recognize that you do have a choice here and you do not have to select the same individuals. Maybe you want to pass the business on to your children, but none of them have the interest, skills or ability to run the business entirely.
You could establish a plan that separates business ownership benefits from business management, meaning that your kids may be removed from the day-to-day responsibilities. Furthermore, you may decide that it is in your best interest or the best interest of the company to sell the organization on your death and then divide the proceeds in a certain way.
Because you have so many opportunities to make the right decisions for you, it’s valuable to work with a qualified estate planning attorney to make sure that you have a plan that protects your individual interests as well as business ownership and other interests at the time you pass away.
Our estate planning attorneys in Pasadena have experience drafting individual estate plans as well as business succession plans for entrepreneurs and company owners. Let us help you document and protect the future of your company.