Why a Will is Important for Business Owners
While just about anyone can benefit from creating a last will and testament, this process is especially important if you are a business owner. Your will allows you to state your desires in a legally binding way regarding who you want to inherit your assets.
If you do not leave behind a will, state law will determine who inherits everything — including your business and any business interests. This means your company would likely end up in the hands of your spouse and/or children, which may or may not be what you intended.
The following are some reasons why you should make creating a will a priority if you own a business:
- Maintain control over who inherits your business interests: Perhaps you want your share of the business to be inherited by a business partner or someone else who is not a blood relative. Or, you may only want one of your children to have a stake in how your company is run. Your will can help you accomplish your goals.
- Smoother succession planning: A properly drafted will makes succession planning go smoothly, especially when you have informed other directors or partners of your wishes for your share of the company. It’s better to avoid surprises and potential court proceedings so you can limit the turbulence your business experiences.
- Continued operation: Planning who will inherit your business after you pass not only gives you control over who will take charge, but it also ensures your business will continue to operate. Far too many small businesses shut down after the death of their founders, something that can be easily avoided through proper planning.
For further guidance on how you can best prepare for the future of your business, contact a skilled Tampa estate planning lawyer with BaumannKangas Estate Law today.