Small business owners in Massachusetts and elsewhere have a number of variants to consider when starting and running their companies. While a business plan can help address many important aspects, they may also want to consider having an estate plan. Wills and other end-of-life documents can help business owners detail how they want their companies’ affairs handled after their passing.
Without a will, the future of the company goes up in the air. Surviving family members may end up with a business that they did not really want, or the business could shut down due to a lack of leadership. If a business closes, the family may then face substantial financial struggles due to a loss of income as well as possible creditor claims. There is also the chance that family members may fight over who should have control of the company.
By having a will and other documents, a business owner can detail how property should be transferred and who should take over the business when the time comes. Additionally, individuals can create succession plans that can also address who takes over, whether the company should be sold or other wishes for the future of the business. Having this plan can be especially useful in accounting for possible financial issues that could arise.
Wills, trusts, succession plans and other tools can offer a number of benefits to Massachusetts business owners. Of course, if they do not know the options available, they could risk putting their families and their businesses in jeopardy. It may be wise for concerned parties to consult with estate planning attorneys to determine what tools could help them protect their businesses.