How do I transfer a business after I die?

Transferring a business after one’s death can be a complicated process. In Illinois, the estate planning laws determine how this is done. Generally, the first step is to obtain a death certificate of the business owner from the local probate office. If the business was owned and operated as a sole proprietorship, the business would likely pass to the surviving spouse, if the spouse is named in the estate documents. If the business was a partnership, the deceased person’s interest in the business is typically transferred to the remaining partners. The transferred partner’s ownership interest can be sold to an interested person, transferred, or even continue to profit the deceased partner’s estate. If the business was a corporation, the deceased person’s shares of the corporation may be transferred according to the estate documents. The living shareholders can then vote on a new shareholder, or they can vote to split the deceased’s shares among themselves. If the deceased was the majority shareholder or the president of the corporation, the surviving shareholders must determine new management to replace the deceased business owner. Finally, depending on the type of business, it may also be necessary to apply for a tax identification number for the deceased’s business entity, as well as notify any creditors or customers in order to ensure the continuation of business. Estate planning laws in Illinois can help guide the succession of a business and provide details on what must be done to ensure the smooth transition of the business.

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How do I transfer a business after I die?

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