How Do I Safeguard My Business Assets in an Estate Plan?

As you take care of your estate and plan for what will happen to it after you’re gone, don’t forget your business. Talk to a business planning lawyer with experience here in Annapolis, MD, who can help you safeguard all your assets with the right business plan

Safeguarding Your Business With an Annapolis, MD Business Planning Lawyer

To keep your business safe, you want a Business Succession Plan in place. A plan like this will make sure that your business is either sold or transferred according to your wishes after your death or incapacitation. The plan can be as detailed as you like, even down to not just naming your successor but also planning out exactly how they are to be trained and how the company will be transferred to them.If you wish for the business to be sold and the proceeds distributed to your beneficiaries, you can lay out important details for this, as well. You might want to think carefully about timing here to ensure your beneficiaries get the most out of your business.

Elements of a Good Plan

Clear Goals

Talk through with your attorney exactly what your objectives are. Once you have these laid out, everything else will fall into place because each item can be evaluated against these goals. At this point, you’ll also want to set up how you’re going to communicate with your lawyer and how your lawyer will communicate with your successor.

Choose a Successor (Optional)

If you want your business to continue and plan for it to be managed by someone you trust, think through who you want your successor to be. Obviously, you want to approach a potential successor early on to make sure that they’re willing to take on the responsibility. You should also discuss a possible successor not only with your attorney but also with other trusted advisors to ensure you have evaluated both their character and skills correctly. 

Specify Your Successor’s Role and Training

Unless your successor is someone already intimately involved in the business on a day-to-day basis, they will probably need training so they can step into your shoes once you’re gone. Lay out exactly how you want that to go, as well as the role you want them to take.

Plan for Selling or Closing (Optional)

The other option, if you don’t want your business to continue after you are gone, is to plan for selling or closing it. The best choice is going to depend on your unique situation, so you must talk this through with an experienced attorney. 

Evaluate All Tax Implications and Discuss Strategies

Taxes are always a serious consideration when you sell a business, so talk through carefully with your attorney about what the long-term implications will be for your beneficiaries and what strategies you can put in place now to minimize the tax burden. There are various types of plans, including long-term succession plans and even emergency plans. To get started on the right plan for you and your business, contact Elville and Associates in Annapolis, Rockville, or Columbia, MD for help today.

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