Should You Include Your Business in Your Estate Plan?
When you start a business, you should not only consider how your business will thrive; you should also
think about what will happen to it when you are no longer available to run daily activities. You may
have an unspoken plan to hand the business down to your children, but you must evaluate whether this
will really work.
In the event that you become disabled, it is best to have a plan in place for your business. Business
income may help your family continue to thrive and may also assist with your medical expenses.
Through an incapacity plan, you can name someone to watch your business while you are unable. This is
often done by signing a power of attorney to grant an attorney-in-fact the ability to sign on your behalf
and have full access to your business and personal finances. By planning in advance, you will have time
to teach your substitute the specifics of your corporation. Doing so could help your company succeed in
Upon your death, someone will have to take over your business permanently. If no one is willing, your
company must be dissolved or sold as is. In your estate plan, you can name a loved one or business
partner to take over after you are gone. If you don’t pick a successor, your family will have to choose.
There may not be a family member who wants to run your company or there may be several family
members fighting for the position. This could create a period of mismanagement which could affect
your company permanently.
Before you name a loved one or business partner to take over your company, speak with that person to
make sure your desires are in line with his or her plans. If you find no one is willing to step-in, you may
need to make arrangements to help your family quickly sell or dissolve the company after your death.
Experienced estate planning attorneys Seattle WA of the Byrd Garrett PLLC offers estate planning and
business planning resources to residents of Seattle WA. To learn more about these free resources,
please visit http://www.byrdgarrett.com today.