What is a business succession plan?

A business succession plan is a plan that outlines how a business will transfer ownership and control upon the retirement, death, or disability of its owners. This plan is a key component of a company’s trust and estate plan in California and is essential for business owners to ensure that their business has a continued presence in the marketplace. Typically, business succession plans involve designating the next person or persons to lead the company, assign decision-making authority to a successor, establish a plan to move assets from the business to the succession owner, and prepare the business for a sale or liquidation. The business succession plan also spells out the tax liability for the parties involved. The business succession plan should include considerations such as retirement, disability, death, and succession conflicts. It should also include consideration of the company’s financial resources, personnel resources, and legal requirements. This plan should also spell out the term of the ownership transfer, as well as associated procedures for training and transferring ownership. As with any trust and estate plan, it’s important to have a qualified lawyer review any business succession plan in California. The lawyer can help review the plan to ensure it meets legal requirements and aligns with the owner’s wishes.

Related FAQs

What is an estate plan?
What is an asset protection trust?
How do I terminate a trust?
Can I change the terms of a trust?
What is a special needs trust?
What are the advantages of an irrevocable trust?
What is a charitable remainder trust?
What is a power of attorney?
What is a pour-over will?
How do I choose a trustee for my trust?

What is a business succession plan?

Related FAQs

Related Blog Posts