You are not alone if you have put off the thought of planning your will, creating an advance directive and taking other steps to address your eventual death. Especially when they are younger and healthy, many Illinois residents feel it is not important to address their estate planning right away. However, as you may know, tomorrow is not guaranteed. An unexpected accident or illness that incapacitates you or worse, leads to your death, can devastate your loved ones. This may be especially true if you own a business and have not thought about a succession plan.
According to Insurance Journal, a business succession plan can give you, your family members and your associate’s peace of mind in knowing what happens to your company if you die or are incapacitated. Your employees, subcontractors and customers may also be reassured by the knowledge that the company will continue to operate smoothly, even if it must change hands. A succession plan can ensure your wishes are met in the following ways:
- Legal ownership or operation of the business will pass to the person you deem the most qualified, whether it be a close family member, your longtime business partner or someone else.
- If your successor has less experience running the company than you did, your succession plan can explain the ins and outs of the business.
- Your business succession plan can include information on how to obtain proper licensing and training to continue running the business, as well as financial account information and social media passwords.
Most small business owners, according to recent surveys, do not have business succession plans in place. You may avoid legal complications by addressing this important matter. This information should not replace the advice of a lawyer.