People who have dedicated their lives to building their businesses are right to be both proud and protective of their endeavors. Whether this includes shares in a corporation, a role in a partnership, or a sole proprietorship, it is essential to retain control over these business holdings using all available tools.
One option involves creating a business succession plan to codify what you want to happen to your business after you pass away. These plans may also provide protection in a sudden emergency and can even effectuate an eventual retirement.
A Kernersville business succession planning lawyer could provide you with more information about how to protect your company. Local estate planning attorneys could explain the role that these documents play in probate court, as well as how they can protect your business against unforeseen circumstances.
The purpose of having an estate plan is to retain control over one’s assets after death. Unfortunately, many business owners or stockholders do not realize that these holdings count as assets in probate court. As a result, a will or other testamentary document may not contain adequate provisions to dictate a business owner’s wishes for the aforementioned assets after their passing. In such a case, a probate court would potentially apply the intestacy rules under North Carolina General Statutes §29-15 leaving a company in shambles.
Having a business succession plan in place helps avoid this unfortunate outcome. These plans function as testamentary documents that give directions during probate. For example, a business succession plan may order a direct transfer of control to an heir, provide instructions for members of a board of directors, or mandate the sale of a company. An experienced attorney could help draft an effective succession plan that carries the intended effect after a business owner’s passing.
While a business succession plan can play a vital role in the probate process, it can also provide protection against accidents or illnesses. Especially with smaller companies, an owner’s day-to-day involvement may be essential to their business’s operations. An event such as a physical injury or illness could jeopardize the company’s immediate future.
Effective succession planning can limit the impact of these incidents on a thriving business. By dictating who will take control in the event of a catastrophe, business succession plans can provide stability in worst-case scenarios.
Business succession plans can also include terms on retirement. Making one’s intentions clear can help minimize confusion over the next steps in a company’s future as well as limit the impact of potential succession battles. In short, a Kernersville business succession planning attorney could help anticipate expected and unexpected future events.
Your business holdings represent a lifetime of hard work and dedication, and a sudden illness or injury could bring that effort to a swift end. It is also necessary to protect those assets after your eventual passing. Forming a comprehensive business succession plan could achieve these goals.
Reach out to a Kernersville business succession planning lawyer today. They are ready to evaluate your business assets, identify possible areas of vulnerability, listen to your needs, and draft plans that provide short-term protection and long-term stability.