What is a business succession plan?

A business succession plan is a document that outlines the transfer of ownership and management of a business. It details the steps to be taken by the owner of the business upon their retirement, death, or other event. Typically, these plans will include provisions for designating who will manage the business after the current owner is no longer available to do so. In the state of Kansas, such a plan may be drafted either directly by attorneys or in conjunction with the business owner and their chosen tax advisor. The plan should cover such elements as the transfer of ownership rights, the division of assets and liabilities, and the appointment of a successor or successors. Business succession plans are an important part of estate planning and can help to ensure that a business continues to thrive, even after the original owner is no longer available to run it. They can also help to protect the interests of the owner by providing a clear plan for the transfer of ownership and management to individuals who are most likely to help the business flourish. Having a legally binding document in place can also help to ensure that the wishes of the original owner are followed in the event of their death or disability.

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