What is business succession planning and why is this an important and essential component of an estate plan? Business succession planning protects your company and your beneficiaries by ensuring sound management decision making continues after your passing while assets are passed to the next generation. How well is your business positioned to survive the loss of its owner, the introduction of new (and potentially inexperienced) equity owners and associated voting rights, and the valuation of interests to be passed to heirs and beneficiaries?
Many Californian’s utilize trusts to avoid costs associated with probate, and to ensure privacy for the family. The present level of federal estate tax exemptions (over $5 million per person/$11 million per couple) and there is presently no estate tax in California. However, many companies and small businesses quickly exceed these valuations, triggering a taxation event at the time of an owner’s passing. Effective business succession planning shields the business from tax exposure, while ensuring that a solid plan is in place to manage the business through the transition, and to either pass controlling interests to heirs and beneficiaries, or liquidate ownership interests and distribute them while maximizing equity valuation.
Business succession planning provides peace of mind, and protects the fruit of your life’s labors. The experienced business, tax and estate planning attorneys at Allen Barron are uniquely positioned to advise you in these matters, and work with you to develop a strategy to protect all that you’ve worked so hard to build. Our effective business succession planning protects your company and your beneficiaries while ensuring that operations continue in the smoothest manner possible. We invite you to contact us for a free and substantial consultation at 866-631-3470. Learn about the issues associated with business succession planning, and the ease with which you can protect your company and preserve its valuation and operational success if you are disabled, or at the time of your passing.