You might not initially think that you have much in common with the Prince estate, but as a business owner you have more than you likely realize. Prince left behind no will or no plan, meaning that he created a lot of legal questions for his multi-million-dollar legacy and empire. Putting together a business succession plan is essential, if you intend to protect your business interests after you pass away.
In some families, for example, only one child wishes to be involved in the future business. With no estate plan, all of the children may automatically receive an interest in the business that they are not necessarily interested in. With the trust, however, the individual who has the business has the opportunity to funnel this business to the interested child. This is usually the child who has already working in the business. That inheritance can be offset to other children with other assets. Cash and a house may be some of the most common assets, but this allows the business to pass on to an invested child who wants to remain involved for many years to come.
The probate process can be lengthy and the sudden departure of a key individual in a business can present many unique legal challenges and problems. It can be difficult to identify a successor if this process has not already been done with the business succession plan. Make things easier for your business and your loved ones by consulting with a business succession planning attorney as soon as possible.