Business owners like all individuals should start with the basics. There are four documents that form the cornerstone of all estate planning. They are a will, durable power of attorney, medical power of attorney and directive to physician (living will). Non-traditional families and same sex couples should consider some additional documents to provide similar coverage available to married couples under the law.
Business owners have unique needs beyond that. They need to protect their business also. This may include preparing for a transfer to a known or unknown future owner. It could also provide for the smooth dismantling of the business. Providing for either circumstance will remove a burden from the loved ones left behind.
Many business formation documents will address what is to happen in the case ofdivorce, disability or death. But these documents should be reviewed regularly to see if they address all potential scenario’s and if the solutions are still viable. If your business formation documents do not address these issues then you must consider whether to modify your formation documents or address these issue in your will.
Using your will to define how to transfer or wind up your business can resolve any issues not addressed in the formation documents. Addressing these issues in your will can be easier than modifying formation documents in some cases. However, it is also important to ensure someone has authority to run the business if you are disabled.
Business owners should work with an attorney to ensure they have an estate plan designed to meet their unique needs. Proper planning will allow you to protect those you leave behind and ensure you leave the legacy you desire. Every business owner has a dream for the future of their business don’t let poor planing derail that future.
Law Offices of Debbie J. Cunningham
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