Family-owned businesses provide a vital source of support for the family. Because this is probably the sole or primary income for the home, it’s crucial that the owners ensure that income can continue if they pass away. This takes a combination of estate planning and business succession planning.
This two-fold plan gives your loved ones the backing they need to survive after you’re gone. Discussing your wishes with someone who can help you determine the best way to make them happen is best.
Plan for a transition of accounts
You need to plan for all of the financial accounts. Your personal accounts should have someone listed as the payable-on-death designee. That person will have access to the accounts when you pass away. They won’t be able to get into the account while you’re still living, so you don’t have to be concerned about that.
For business accounts, you need to determine who needs access to them so you’ll likely have to sort out the succession plan. Providing continuity for the company is important for the customers and your loved ones.
Plan for the business to continue
Unless your business is dependent solely on you, such as if you have a freelance business with you as the only person working, you need to make a plan for the business to continue. This is part of the succession planning that you need to take care of.
You have to name someone who can take over the management of the company and make sure they know what to do. If this isn’t possible, you’ll have to make other plans for the business to close or for it to be bought by someone else.
Making sure everything is in order for your family members to have support when you pass away is crucial. Since your small business is a primary source of support, you must be sure you have solid plans in place for that support to continue. Working with someone familiar with estate planning and succession planning for small business owners can help you ensure you don’t miss anything so your loved ones are taken care of.