Estate Planning for Business Owners
This article will look at some of the issues that the clients and the lawyers should discuss if one wants the business to continue after the death. Before one meets with the lawyer to plan the estate he should sit down with the beneficiaries to try to answer some critical questions, including how the business will be operated in the immediate aftermath of the death. Customers, bankers, suppliers, competitors, and predators are all very interested in what will happen with a business immediately after the death of the owner and president. Loan documents, franchise agreements, and other legal contracts often contain termination or re-negotiation clauses in the event of the death of the majority or sole business owner. One should make sure that the new leaders specified in the plan for succession are specifically granted authority to make decisions concerning the business immediately after the death or disability. If one wants the business to continue in the family, the plan should provide a legacy for children and future generations after the death or disability. At the same time, it must adequately address financial needs of a surviving spouse.