Learn how estate planning with a probate lawyer helps provide a clear succession plan as a business owner.
How Can a Probate Lawyer Help?
If you own a family business, much of your wealth may be directly connected to your business activities. If this is the case, according to Entrepreneur, your estate plan should include a provision that outlines how the business will be transferred to your children or heirs or, in the alternative, a provision for selling the business for an appropriate price. Planning for the transfer or sale of a business can take many years and careful estate planning. Without clear and legal provisions laid out, the probate process can become complicated, contentious, and can take years to resolve.
If you own a family business, much of your wealth may be directly connected to your business activities. If this is the case, your estate plan should include a provision that outlines how the business will be transferred to your children or heirs or, alternatively, a provision for selling the business for an appropriate price.
Planning for the transfer or sale of a business can take many years and careful estate planning. Without clear and legal provisions laid out, the process can become complicated, contentious, and can take years to resolve.
If you own a business, it is a good idea to speak to an estate planning or probate lawyer in Tennessee to discuss your options. A skilled probate lawyer can assess your individual needs and determine the best course of action, whether this is a trust, will, or other legal measure.
The kind of plan you’ll make will depend on the kind of business you have. If you have a founder-dependent business–for example, you work as a doctor, dentist, lawyer, or other professional–your plan will be different than the owner of a family restaurant or hotel. In some cases, a business will end when the person who founded it passes away.
How Does the Probate Process Work?
A will is a book of instructions that takes place when you die. Probate is the process by which a court determines the validity of a will. Probate can be complex when it comes to businesses because the business may include tangible as well as intangible property.
A revocable trust, sometimes called a “revocable living trust,” is also a book of instructions that takes place when you die. But a revocable trust does not have to be probated and might be the best form of estate planning when a business is going to be transferred at death.
Either a will or a trust can include a buy-sell agreement to ensure that all individuals who inherit the business have a stake in its future, whether they are actively involved or not. After all, it can be difficult to predict which children want to carry the business forward, and which would prefer to sell a portion to another sibling or family member.
Your estate planning or probate lawyer can review your case and determine the best setup given your circumstances. Every case will be unique.
With either a will or a revocable trust, a business can be valued and appraised, taxes paid, and debts settled. Once these considerations have been satisfied, the estate is passed on to inheritors.
It is important to understand what will happen during probate or the transfer of assets in a trust so there are no surprises. A probate attorney can review your circumstances to help you better understand what will happen as the process unfolds.
Elder Law of Nashville works closely with clients to answer their probate and legal questions. Contact us today to discuss your options with a probate lawyer in Nashville.