Many people think they have comprehensive estate plans in place that deal with the full extent of their assets. These can include wills, trusts, and even living wills that leave instructions for future medical care. However, even with these documents in place, there may still be a gap in your estate plan concerning your business holdings.
At Hegwood Law Group, a Bay City business succession lawyer could help to craft plans that dictate what happens to your business assets after your death. This may include directly nominating an heir to receive this property, leaving instructions for a board of directors, or ordering the forced sale of assets. With help from our experienced attorneys, you could prepare for unexpected illnesses or injuries that jeopardize your ability to continue in a leadership role in a company. Our team is ready to evaluate your current estate plan and draft new documents that provide for your company’s future.
Business Succession Plans as Testamentary Documents
One primary function of a business succession plan is as a testamentary document that can work in tandem with a traditional will. Usually, a will deals with tangible property such as physical items, real estate, or even bank accounts. However, many estate plans fail to mention business holdings in these documents. This can come with disastrous consequences.
Company Inheritance Under Intestacy Laws in Bay City
Probate courts will consider business holdings as part of a person’s larger estate. If an estate plan fails to mention these assets, the court may use the state’s intestacy laws to determine future ownership after a person’s death.
According to Texas Estates Code § 201.001 et. seq., this could mean that multiple heirs may inherit a company. This could lead to fighting amongst family members or even force the sale of an established business. Having a comprehensive business succession plan that dictates how a person wants their company to continue after their death helps avoid this unfortunate outcome. Our local attorneys are ready to explain more about business succession plans as testamentary documents.
Business Succession Plans Provide Protection Against the Unforeseen
While business succession plans can provide for a company’s future after a person’s death, they can also serve as a contingency plan against potential disasters that leave a company’s owner alive but incapacitated. Car accidents, sudden illnesses, or even planned retirements are examples of situations where a plan can be valuable.
A Bay City business succession lawyer at our firm could draft plans that determine what will happen should the author be unable to make decisions. This could include mandating that an incapacity automatically transfers shares to a named heir, ordering the sale of those shares, or even ordering the dissolution of a business. Consulting with our team allows us to understand the needs of business owners and provide help in case of unexpected catastrophes.
Reach Out to a Bay City Business Succession Attorney Today
Protecting your business and your family means having a comprehensive estate plan in place. This can inform a probate court which heirs you want to inherit your assets or even leave orders for the dissolution of a business. In addition, these plans can leave instructions in case of an illness or injury that prevents you from making business decisions.
Our Bay City business succession lawyers are ready to help you fill this vital portion of your estate plan. Protecting your business is just as crucial as naming heirs to other property or having a living will that dictates potential future medical care. Let our team provide the support you need by giving us a call today.