The probate process plays an important role in the transfer of a business’s assets. When the owner of a company passes, it can be difficult to determine how the business should be run, and by whom, if there is not a plan in place. Laying out your future plans with assistance from an experienced business succession planning attorney reduces these unnecessary risks because it allows you as the owner to dictate what happens when you are not around to control operations.
A lawyer could help advise you of how you can protect your company through probate and business succession in Tustin. Proper estate planning may ensure your business remains successful, and the dedicated legal professionals at Amity Law Group could develop a business succession plan based on your goals.
Business Succession Planning
The process of business succession planning involves developing a strategy for what to do when the owner of a company leaves, retires, or passes away. These things tend to happen unexpectedly, so it is never too early to consider developing a business succession plan. Effective planning allows the business owner to give step-by-step instructions on how to handle the future of the company.
The most important part of business succession is identifying potential risks. Knowing the risks can help business owners avoid negative consequences. Some common issues that arise in business succession include:
- Loss of trust
- New leadership
- Potential conflict
- Employee turnover
- Vulnerability to competition
- Diminished value of the business
When a trusted business owner unexpectedly dies or leaves the company, it can damage the reputation, result in turnover, and impact the value. As such, it is crucial to plan for these potential issues to protect the long-term future of the company.
There are two main types of business succession plans. Long term succession plans look ahead and prepare for a future transfer of ownership. These plans should be reviewed and updated frequently, as it is not always possible to foresee potential issues. Emergency succession plans happen when there is a sudden transfer of ownership. The goal is to control the transfer of ownership and immediate issues that arise. A lawyer in Tustin with knowledge of probate and business succession could help construct both types of plans.
Safeguarding a Business During Probate
By developing comprehensive succession plans, business owners can ensure their interests and assets remain valuable during a transition. This includes naming a successor, drafting transfer agreements, and establishing trusts to secure the business’s future. There are important steps to take during the probate and estate planning process for business owners:
- Start as early as possible
- Establish a comprehensive plan that identifies successors, outlines responsibility, establishes contingency plans, and more
- Review and update the plan regularly
- Communicate with shareholders and business partners
The best way to begin planning is to secure legal counsel. Probate laws can be complex, and a Tustin lawyer who is experienced in probate and business succession could help tailor a plan to ensure all goals are met.
Contact a Lawyer in Tustin for Help With Probate and Business Succession
The probate process can impact a business significantly, so it is crucial to develop a thorough business succession plan. When you plan for potential challenges, you can protect your company and assets.
At Amity Law Group, we have the knowledge and skills to guide you through probate and business succession in Tustin. When complex assets are involved, it is wise to consult a legal professional, since mitigating potential risks can ensure the long-term success of your company. Do not hesitate to contact us to schedule a confidential consultation.
