Estate planning isn’t only about passing on personal wealth. It’s a critical part of protecting your business legacy. As a business owner, your estate plan should answer one key question: What happens to the company if something happens to you?
Here’s what to review before year-end:
Create or Update Your Will
Ensure your will addresses both personal and business assets. If you don’t have one, your estate, including your business, may be tied up in probate for months or even years.
Set Up a Succession Plan
Whether you want your children to take over or your partners to buy you out, a clear succession plan helps prevent disputes and ensures a smooth transition.
Review Your Operating Agreement
Does your current operating agreement cover ownership transfers in the event of death or incapacity? If not, it’s time for an update.
Establish or Review Buy-Sell Agreements
A buy-sell agreement outlines how business shares are sold or transferred, who has the right to buy them, and how they're valued. This protects both your family and your co-owners.
Explore Estate Tax Strategies
Business owners often exceed estate tax thresholds. Gifting shares, creating trusts, or using valuation discounts are just a few tools to explore with your CPA and estate attorney.
An estate plan isn't static, it should evolve as your business grows. Take time before year-end to align your financial goals with your legacy. Doing so ensures your business continues in the hands you trust.