3 ways to handle your business in your estate 

3 ways to handle your business in your estate 

| Jul 2, 2021 | Estate Planning & Probate |

The bigger your assets, the more important it is to plan carefully for them in your estate. Your real estate and financial accounts require careful planning, but so does your business. 

There are many different ways for you to address your business in your estate plan depending on your goals and the way you own the business.

You can transfer ownership

If you have children that want to follow in your footsteps, passing the business on to one of them could be a great idea. You may make it official in your estate plan, but you can also begin training them to take over your position right now.

You can dissolve the company

If you are the sole owner of the business and you either don’t have someone to inherit the property or know your family members don’t want to run the company, dissolving the business and distributing the proceeds among your heirs might be the best approach. You will have to factor in expenses like severance pay for your workers when making plans to end the company at the time of your death.

You can always sell to someone else

Maybe you have a business partner who would happily buy out your share in the company after your death. Perhaps there is an outside investor who has long expressed interest in taking over the business. Sales to third parties can produce significant revenue for your heirs without necessarily putting your employees out on the streets. 

Thinking carefully about your business and the obligations you have to others can make planning for its transfer after your death easier.