There are many different issues that might come up as you attempt to leave or sell a business. For example, if you own a family business, you may wish to pass it down to a future generation but it is still beneficial to construct a business succession plan to consider these issues and to start preparing to train those key team members.
Another option available to business owners is to leave the company to co-owners. If you have one or more current owners of the business, you might work together to create an agreement that states that upon the death of any one owner, the interest is automatically purchased by the other owners.
This is usually done through a tool known as buy sell agreement, which helps to ensure that any beneficiaries of the deceased company owner do not unintentionally become owners of the businesses. You can use an irrevocable life insurance trust or a life insurance policy to help cover these buy sell agreements and also provide immediate cash liquidity for those who are staying on to manage the business.
In all of these circumstances, it is helpful to have a knowledgeable business succession planning lawyer to support you through the process, in creating that estate plan and in ensuring that you have considered all of the most important issues in term of updating it over time. Schedule a time to meet with a knowledgeable business succession planning lawyer in Northern Michigan today.
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