Protect Your Business after Your Death

Business succession planning involves agreements made regarding the state of your business should you pass away. Businesses can have a dramatic affect on your estate's tax liability. To avoid disagreement surrounding the ownership of your business after your death, speak to Donna J. Jackson, Attorney at Law, P.C. She represents business owners throughout central Oklahoma.

Important questions you should ask while undertaking business succession planning include:

• Do your children want to inherit your business?
• Should you sell your business instead of devising it your heirs?
• Who will control the business when you die?
• Do you want to pass management control to your children while maintaining equitable interest in the business?
• What happens if you have a business partner?

Business Estate Taxes

Consider the estate tax liability of your business. If valued over two million dollars, your business may owe estate taxes. If fearing your business will lack adequate cash reserves to pay the tax, you may consider funding the tax liability through a life insurance plan. Lawyer Donna J. Jackson will determine your cash reserves to determine the best tax plan.

Buy Sell Agreements

If you own your business jointly, you should consider a buy-sell agreement when undertaking business succession planning. A buy-sell agreement defines what happens to your share of the business should you die or wish to the sell the business. Your partner may choose to buy your share of the business from your estate for a predetermined amount. You also may want to draft a right of first refusal clause in the agreement whereby you may stop any sale of your partner's business share.

These are just a few considerations when considering business succession planning. To learn more about it, call lawyer Donna J. Jackson at 405-840-1874. Submit question you have to us by filling out the attached contact us form.