No one wants loose ends causing problems for their loved ones after his or her passing. As a Florida business owner, you may know more than many about how important it is to plan ahead for certain inevitable situations. As a result, you are now considering your options for business succession planning and how it could fit into your overall estate plan.
You may not have given much thought to your succession in the past because you intended to operate the company for as long as possible. However, recent events or a general readiness may have had you thinking more about who you would want take over or what you would like to happen to the company in general when the time comes to step down or after your passing.
Why create a plan?
Even if you have a loyal employee or two that you consider prime candidates to take over the company, it is important that you do more than simply let them know that you intend for them to take over. Having a succession plan in legally binding documents could prove beneficial for various reasons, including the following:
- A formal plan will prevent confusion over how the business should be handled during probate proceedings, which could mean that your final affairs are settled in a timely manner.
- If you have a business partner or other person you intend to pass the company on to, the plan can ensure an agreed-upon price for shares of the company.
- A life insurance plan associated with the business could ensure that funds for your share of the business will become immediately available.
Of course, this plan could also allow you to make sure that the person or people who you want in charge of your company will have legal authority to take over. In the event that you want the company sold entirely in the event of your passing, you could make arrangements for that desire as well.
Creating a solid plan
Estate planning in general can be complex and having business succession plans to include can make the process even more challenging. However, in the end, having a solid plan in place could bring you some peace of mind as well as better ensure that your business partners and loved ones are taken care of as you see fit. If you have questions about creating a succession plan that suits your needs, working with an experienced attorney may prove useful to you.