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Addressing business succession in your estate plan: 2 benefits

On Behalf of | Mar 14, 2023 | Estate Planning

The businesses you own are part of your overall estate, yet some tend to keep business matters separate from other issues, even in their estate plans.

It makes more sense to address business succession in your estate plan since your company is an asset. Bundling documents and instructions into one strategy simplifies business succession and estate administration, but that is not the only benefit.

Ensures operational continuity

Think of your business succession plan as a blueprint facilitating the smooth transition from you to your successor. With a well-drafted succession plan, your employees might not notice anything different other than your absence. Your company should continue functioning as it did before your retirement or death.

Reduces conflict

Those without a succession plan risk an eruption of business and perhaps family conflict if they suddenly die or are forced to retire. Your family and shareholders or associates will not know what to do and may disagree about what steps to take next. A business succession plan ensures everyone connected with your company is on the same page, substantially reducing the risk of conflict.

Do you need legal counsel?

Like all components of your estate arrangements, your business succession plan should focus heavily on reducing tax and probate hardships. One way to accomplish this goal is to have an estate and business law practitioner review your documents. Often, the perspective of an industry professional can identify areas to improve and elements to remove altogether.

It also serves your best interests to learn more about Mississippi legal codes. Three areas to study are estate, business and probate laws. With due diligence and professional guidance, your business legacy can survive and thrive long after you are gone.