Small businesses are among the major contributor's in today's economy in Washington. While people will engage in estate planning to protect their families, those who own small businesses are not always aware of the need for estate planning regarding the business. The lack of a succession plan could prove catastrophic in the event of the business owner's passing.
If a couple owns a business together and there is no plan in place for what happens in the event of one of the partner's deaths, the business could be thrown into chaos. If a contract is being negotiated at the time a partner passes and there is no contingency in place, the pending contract could be put in limbo. Such issues can be avoided if there is a plan in place that states who will run the company, and how it will be run, in the event of the owner's or partner's death.
In a family owned business, it's important that the spouse understands the succession. This can eliminate a lot of confusion and chaos at what can be a very difficult time. Details that should be shared might include the surviving spouse's expected role or plans to sell the business in the event of the other spouse's death.
Owning a small business can be an immensely rewarding experience. In order to protect the business and share the rewards with loved ones, estate planning for the business should be put in place. A business owner in Washington might benefit from discussing the options with an experienced business estate planning attorney who can review the situation and help the client to ensure that all eventualities are covered by the plan.