Business Succession Planning
Why You Need a Torrance Business Succession Attorney's Help
Owners and operators of closely held or family businesses dedicate their lives to making sure their businesses are successful and profitable. Families count on these businesses for their support and livelihood. It is essential to have a business succession plan in the event of the owner's death or retirement.
Our Torrance estate planning attorneys at the Law Offices of James C. Shields have the requisite knowledge and professional experience to ensure your business continues to thrive no matter what the future may hold. The main reason a family-owned businesses does not survive to the next generation is due to a lack of planning. Failure to implement a business succession plan along with estate planning will almost certainly result in disruption of the business, and it could result in a forced liquidation in order to pay estate taxes. Our South Bay estate planning firm can help you avoid these difficulties and protect your family's future.
A buy-sell agreement, or BSA, is essential for any good business model and guarantees a set price and a willing buyer in the event of a death or retirement. A buy-sell agreement will lock-in the value of the business at a conservative price, which is essential for good estate tax planning. It will name the future buyers and ensure that there is funding available to immediately purchase the business interest and ensure continuity of production. It is necessary to plan to fund the buy-sell agreement so that there are liquid assets available; purchasing life insurance is the most common way to accomplish this goal.
Revocable Living Trust
Another key element to good business planning is to execute a revocable living trust. This will keep the business completely free from the probate estate, avoiding administrative fees and keeping your business interests free from public scrutiny. Revocable living trusts allow business owners to name a successor trustee, ensuring the assets and control of the business are passed along smoothly, quickly, and privately.
Plan Ahead for a Smooth Succession and Minimal Disruption
If you own a closely held business, there is no time like the present to implement a good business succession plan. Doing so will free a business owner from worry about what is going to happen to the business and their family after he or she retires or passes away.
Contact our Torrance probate lawyers to explore the estate planning and business succession options available to ensure the smooth transition of your family business
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