As a small business owner, you have likely poured a lot of time, effort, and resources into building and growing your business. Ensuring the continuation of your business in the event of your incapacity or death is an important aspect of planning for the future. Without a plan in place, your business could be at risk of being sold or dissolved, which could have a significant impact on your family and employees. Working with an experienced estate planning attorney in Salem, OR can help you navigate the process of planning for your business’s future.
Here are some strategies to consider when estate planning for your small business in Salem, OR:
- Create a succession plan: A succession plan outlines the process for transferring ownership and management of your business in the event of your incapacity or death. This plan should identify a successor, whether it be a family member, employee, or third party, and outline the steps for transferring ownership and management. Your estate planning attorney in Salem, OR can help you draft a comprehensive and legally binding succession plan.
- Use buy-sell agreements: A buy-sell agreement is a legally binding contract that specifies how ownership of a business will be transferred in the event of the owner’s incapacity or death. This agreement can help ensure that the business is transferred to the intended successor, rather than being sold to an outsider or dissolved. Your estate planning attorney in Salem, OR can help you draft a buy-sell agreement that meets your needs.
- Establish a trust: A trust can be a useful tool for transferring ownership of a small business to a successor. With a trust, you can specify how the business should be managed and by whom, as well as establish provisions for the distribution of assets to beneficiaries. An estate planning attorney in Salem, OR can help you understand the different types of trusts available and determine which one is right for your business.
- Consider life insurance: Life insurance can provide financial resources to help your family or business partners buy out your ownership interest in the event of your death. This can help ensure the continuation of the business and provide financial security for your loved ones. An estate planning attorney in Salem, OR can help you evaluate your life insurance needs and choose a policy that meets your goals.
Estate planning for small business owners is an important aspect of ensuring the continuation and success of your business. By putting a plan in place, you can protect your business and provide for your family and employees in the event of your incapacity or death. At Soriano Law, we work with small business owners and help navigate the process by creating a plan that meets your specific needs.
If you have questions about estate planning as a small business owner, call us today to schedule a time to speak.