If you own or hold a stake in a business, those interests should be a central focus of your estate planning process. Without a clear plan in place prior to your death, whoever inherits your share of a company may be unprepared to manage it effectively, or may not even be your preferred beneficiary at all.
A great way to ensure your estate plan succinctly and thoroughly protects your company interests is by working with a Manhattan business succession lawyer. A qualified trusts and estates attorney could explain your legal options to you, help determine what would be best for your business, and work with you to make the necessary preparations in your estate plan.
It is generally best to set up an estate plan sooner rather than later, but a lot of people tend to put this off. While things like advance health care directives, powers of attorney, and even certain types of trusts can be set up on relatively short notice, business succession plans should be made as far in advance as possible, preferably ten to 15 years before the plan will go into effect.
As an experienced Manhattan attorney could affirm, the primary reason it is so important to settle business succession matters before they become urgent issues is the number of different considerations these matters often require. A business owner may have an idea of who they want to be in charge of their business interests after their passing, but they may not have a thorough understanding of how qualified that person is to take on those interests, or of what differing ideas other interested parties might have on the direction the company should go in.
Without a clear business succession plan, even basic questions like what the total value of business assets is and who specifically is in the line of succession may be difficult to answer, especially if the original owner can no longer offer clarification. In short, failing to put serious thought into what would be in the long-term best interests of a business could be detrimental, so it is always best to start the planning process as soon as possible.
A seasoned and skilled business succession lawyer in the area could provide assistance with every aspect of the planning process. If nothing else, the presence of a knowledgeable legal professional can be crucial to ensuring that a business succession plan prioritizes the long-term success of the company, even if it requires making and enforcing decisions that will not be popular with every interested party.
Beyond preemptive conflict mediation, a qualified attorney could also help valuate business interests, plan for tax obligations, set up a plan to streamline leadership transitions, and ensure regulatory compliance. If it is in an owner’s best interests, legal counsel could even assist with selling business interests to family members or unrelated third parties.
Whether you own a sole proprietorship, a massive corporation, or anything in between, determining what will become of your company interests after you retire or pass away important. However, making sure the succession process is straightforward and well-considered at every stage is a complicated task.
If you want to ensure your best interests are preserved, hiring a Manhattan business succession lawyer could be highly beneficial. Schedule a confidential consultation by calling today.