Why is a Business Succession Plan Important?
Avoid Estate Tax Problems: When an individual passes on, all of his or her assets must proceed through estate administration. Extensive assets from a prospering family business may cause an individual’s estate to be subject to expensive estate taxes. However, often times, the majority of these assets are actually tied up in the business and cannot be used to pay the estate taxes without selling the business. At Lahti & Lahti, P.C., we help clients proactively create a business succession plan so that the family is not forced to sell the business later. Avoid Business Partner Disputes: Business succession planning can also be effective to avoid tension with how to move forward with a business once a business partner passes away. Although tension is often unforeseeable, it is very common for other business partners to disagree with how a business should continue or cease to continue after a partner dies or becomes incapacitated. By proactively creating an inclusive business succession ag
