The simple answer is yes! All businesses should have a succession plan in place. Most large businesses have some structure that would sustain the business if a key manager were to become incapacitated or die. However, small business owners typically do not have a plan for how the entity will continue in this situation.
Who would handle the essential functions of your business if something were to happen to you – pay bills, collect payments, fulfill orders or even contact customers? If you are a lawyer with a solo or small practice, who will take over your cases, handle your escrow account and communicate with courts, if you are gone? Any small business with a limited number of people managing the day-to-day affairs of the entity should have a plan in place if something should happen to those in charge. Failing to do so could lead to an end to that business and the loss of an asset that is a valuable part of your legacy.
It is also important to understand what will happen to your business in the event of your death. How will the asset pass? Does your Will include your business interest? Have you chosen an executor that will be able to manage or sell your business in the event of your death?
If you have a business and would like to learn more about including your business in your estate plan, please reach out to our firm and set up a consultation with a member of the Legacy Studio Estate Law team of attorneys. We can help you protect your legacy and give you peace of mind.