Establishing a closely held business entity during the estate planning process is one strategy to formalize business interests and to establish a plan for how the business is to be handled upon your death, and in some cases, even before your death. For example, establishing an LLC (limited liability company) for rental or vacation property to address day-to-day management, and operating procedures, or to mitigate liability and as a strategy to address how the property will be passed on to future generations. Baker Vicchiollo Law can advise on the use of this strategy, review business entity options, and facilitate the process of creating the business entity. Equally as important is then incorporating the business entity into estate planning documents to solidify your wishes.
Incorporating business succession planning into the estate planning process is essential for business owners. Planning for what will happen to your business upon your retirement or death can address how the business will be managed, who will own it, and whether or not it will be sold or continue. Business succession planning facilitates decision-making around these issues to ease the impact of a transition, which can be especially complicated because of the relationships and emotions involved in a closely-held or family business. Additionally, business succession planning can include strategies to minimize tax implications as well as strategies to limit liability.