Orange County California
Trust Attorneys

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As a small business owner, you understand how important you are to the operation and success of your company. You may also understand the need for an estate plan to transfer your assets after you die and allow for someone to make medical and financial decisions on your behalf. Unfortunately, many people make the mistake of forgetting that these two issues intersect. Business owners should update their estate plans to allow for a smooth transition of their business interests should they die or become incapacitated.

6 Estate Planning Modifications to Address Business Interests

What estate plan updates should you consider in order to address your business interests? The following are six examples:

  1. Modify your current estate planning documents to ensure that your personal representative and trustee have the authority to handle the estate or trust’s interests in the business in the event that you become incapacitated or die.
  2. Consider adding another shareholder or member to your business if you wish to pass ownership or control over the business to that individual.
  3. Determine whether you want your loved ones to have a continuing interest in the ongoing affairs of the business after you die.
  4. Find out if your loved ones want to continue their involvement in the business. If not, determine how their inherited interest in your business should be valued if they will be bought out.
  5. Consider adding a trust that contains special provisions to hold your shares of stock after you die, allowing for a quicker transfer of ownership rather than having to go through the probate administration process.
  6. Consider adding a trust to hold your membership interest in a limited liability company.

Modifying an estate plan to address business interests requires the guidance of an experienced legal professional familiar with the unique issues associated with these important assets. We are here to help. Contact us today at (714) 459-5481 for more information.

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Due to the CoVid19 virus California has issued a Stay-at-Home order. We understand how important the health and safety of our clients, and our staff is. We are complying with this order by continuing to work from our homes. While we are not in the office, we are still here to answer your questions, conducting consultations for review, and initial appointments by phone and email during normal business hours. We know that in this time, more than ever, it is important to have peace of mind about your estate planning. We are here to help you through this. Call our office number or email us and we will respond as quickly as possible.