How to Keep Your Business in the Family Estate Planning for Business Owners in Oklahoma
A thriving family business is truly something to be proud of—it represents years or even decades of hard work, plus the added labor of navigating family relationships. However, when it’s time for the business to pass to the next generation, it’s all too common for a lack of planning to cause the business to close its doors permanently. As a business owner, a significant part of your estate planning should focus on how your family business will be handled. Our estate planning law firm can create a plan that addresses your specific needs.
The team at Entz Burton & Associates can help you craft an estate plan that allows for a seamless transition for your business. We understand how hard you’ve worked to make your business a success, and our goal is to help ensure that it continues to be one. Attorney Jeffrey Burton, along with the rest of our experienced attorneys, is here to listen to what matters most to you. Call us at 405-773-9800 to set up a time to meet with our team.
Getting Everyone on the Same Page
A big part of planning for your business happens before you even start working with your estate planning attorney. Prior to putting pen to paper, you should make sure you and your loved ones are on the same page with regards to your business. It’s all too common for a business owner to think that their children are as passionate about their company as the owner is, only for the business to fizzle out after they pass away because no one wanted to keep it running. While it can be hard to talk about life after you, knowing what your family wants and what they’re comfortable doing can help you decide what to do with your business.
Important Estate Planning Tools
Your estate planning lawyer will utilize a variety of tools to set your business up for success after you pass. Wills and trusts are obviously an important part of this process—wills outline how assets will be distributed, and holding business assets in a trust may allow your beneficiaries quicker access to them after your passing. However, your attorney may also use buy-sell agreements to streamline business continuity. They’ll likely also recommend designating a power of attorney. This is particularly important for business owners—should you become incapacitated, you need someone who is legally able to make decisions that manage your finances and keep your business afloat. Finally, your estate planning attorney may explain how life insurance can be used to smooth out the transfer of the business or allow one party to buy out the other’s share.
Not all estate planning tools are needed for all scenarios. That’s why working with an estate planning law firm is important.
Business Succession Planning
A comprehensive business succession plan allows day-to-day operations to keep running without alarming business partners, customers, and suppliers. You’ll need to identify your successor and be specific about who will take over specific duties. While this is often a family member with relevant skills and passions, business owners without heirs or whose heirs are uninterested in the family business may pass leadership titles down to employees. Your plan should also outline specific skills and training needed to get your chosen successor up to speed on what the business needs. In-depth timelines ensure that the successor can take on duties at an appropriate pace while ensuring that the business’s daily needs are met. Don’t forget contingency plans, which account for potential emergencies and unforeseen circumstances that can throw a wrench in the business’s operations.
Your estate planning lawyer may also work with you to identify potential complications and concerns. For example, if there are disputes over who gets to take over when you pass, those disputes may be amplified when the time actually comes. While you can’t decide how people will react to these situations, you can put in some extra work now to protect your business.
Discuss Your Legal Options With Entz Burton & Associates
Our team is ready and waiting to discuss your estate planning needs. Let’s start with a consultation. Call us at 405-773-9800 or contact us online now.
Attorney J. Michael Entz at Entz Burton & Associates is an experience lawyer in estate planning law, business formation and asset protection serving the families in Oklahoma City and Weatherford office.
