The Importance of Business Succession Planning
Many people in California earn a living from their own businesses or business interests. While you might be focused on the success of your current operations, it is also important to consider what will happen to your business if you retire, pass away, or become incapacitated. Having a carefully thought-out and drafted business succession plan is essential.
You should always discuss your many options for succession with an experienced business and estate planning lawyer in Pleasanton. Some steps of creating a succession plan include:
Choosing a successor – Often, this can be a business partner, adult child, or another family member who wants to take over the company. In other situations, selling your interests to a co-owner or selling the entire enterprise may be the best option.
Valuating the business – You will need to know what your business – or your ownership percentage – is worth in many situations. You can plan how the business will be valued should something happen to you.
Purchasing life insurance – Once you estimate how much your ownership is worth, you may want to take out a life insurance policy for that amount to cover the transfer of interests.
Succession plans can make it significantly easier to settle your estate when a business is involved. If the business will carry on, the right succession plan can help eliminate any interruptions of operations and allow for a smooth transition.
Contact Our Business and Estate Planning Lawyers in Pleasanton Today
All business owners should carefully consider what they want to happen to their business interests, and should carefully prepare a thorough succession plan with the help of a Pleasanton estate planning and business attorney. To discuss your estate plan regarding a business, please call Randick O’Dea & Tooliatos, LLP at 925.460.3700 or contact us online to set up an appointment.