Estate Planning Concerns
When you die, if you have not made any special plans, your business interest passes to your heirs according to the terms of your will or state law governing intestacy when there is no will. However, you are free to make whatever plans you want when it comes to your business interest.
Factors in estate planning decisions. Is there a relative (e.g., spouse or child) who already works in the business and is your natural successor to run the business when you die? Or does your family want nothing to do with your business after your death? Do co-owners prefer to take over your ownership interest? Answering these questions can help direct you toward the best way to decide now what will happen to your interest when you die.
Buy-sell agreements. These are contracts among co-owners of a business to fix the actions that will be taken when 1 owner dies. There are 2 basic types of buy-sell agreements:
Get J.K. Lasser's Small Business Taxes 2013: Your Complete Guide to a Better Bottom Line now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.