Estate Planning/Succession Planning for you small business

Without an estate plan, a small-business owner can leave behind a big hassle for his or her family. Though it’s generally not something most of us want to talk about, Ben Franklin was right when he declared, “In this world nothing can be said to be certain, except death and taxes.”

So, just like you’ve taken care of every other aspect of business, don’t overlook this inevitable last task.

“[Without an estate plan], your business assets are going to be a probate mess,” explained attorney Philip J. Ruce. “Probate is the court administration process whereby your assets are distributed to your beneficiaries. Ensuring there is an orderly succession will help your family to concentrate on the important things after your passing: Each other. Not lawyers.”

“At the very minimum, you should have a will that will tell your personal representative who should received your business interests,” Ruce added. “A much better solution would be to have your business interests assigned to a revocable trust. This will allow your trustee to transfer your business according to your wishes. If done properly, this will occur outside of the probate court system, ensuring efficiency and privacy.”

For most of us, the thought of life coming to end can be scary. But as you concentrate on the day-to-day growth of your business, don’t forget that the value your business starts at will likely change drastically by the end—so, get a succession plan in order early.