There are many parts of creating an estate plan that are straightforward. When it comes to personal property, like a house or a car, it is a simple matter of figuring out who you want to leave it to and determining the best method to pass it on to limit the amount of taxes that need to be paid. Owning a business will complicate matters, since the steps you will need to take are not so easy. Here are some tips for leaving a business through inheritance.
Select The Person To Be The Owner
A very sensitive matter that you'll need to decide on is selecting somebody to be the company's new CEO or owner. It can be tricky because it needs to be somebody that investors are comfortable with taking over, and a decision that needs to be discussed before you were to pass away. Making a good decision can leave others in the company feeling positive, and will support the new management that you are deciding to put in place. If you make a bad decision, it can create panic with those that have a stake in the company.
An attorney can actually help you with making this decision, and can even talk to investors on your behalf to feel them out on your decision.
Notifying Your Successor of Their Role
Selecting a new CEO should not be a surprise to that person taking over the role. It is a decision that should be discussed with them well in advance, and be a role that they are excited to be taking in the company.
Your lawyer will be able to assist with them signing all of the necessary paperwork to make it official that they will be the next owner of the company. In addition, there will also be documents that need to be signed to distribute assets, stock, and other investments to them.
Create A Proper Will
It's also important that your lawyer puts great care into the wording of your will. This is to ensure that there is no confusion of what our wishes are, and so that the will is not contested by others during probate. Having disagreements over your private assets can also reflect upon your business, and you'll want to make sure that things go as smoothly as possible.
For more advice about passing on a business through estate planning, your lawyer can help you out.
Share29 December 2016
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