Estate planning is an essential element for any homeowner in the San Diego area, but it is even more important for the owner of a business. What is the best way to structure my corporate and personal assets, and how will I pass those interests on to my family, heirs or beneficiaries in the event that something happens? The implementation of trusts to protect your personal assets including your home, investment properties, vehicles, financial holdings and property provides peace of mind, and a secondary layer of protection in the event of a business related liability. But what is a “business succession plan” and how will that protect all of your hard work?
A business succession plan establishes clear processes and legal protections to ensure that the business can continue to successfully operate in the event that one of the principles becomes incapacitated, retires or passes away. How will the survivors take control of the business? Will they run the day-to-day operations, or do you intend for them to simply enjoy the financial benefits associated with their ownership interest? How will interests between the owners be affected by major life events and what options will be available to each party to ensure that the business endures?
The vast majority of businesses in San Diego and all of California are considered to be “family businesses”. Many people don’t realize that some of the largest corporations in America are actually family owned, and careful planning is required to ensure that the family business is protected and survives a transfer of ownership interest to the next generation and beyond. Careful strategic planning is required to address many of the potential scenarios that might destroy a business you spent years of your life to build and grow. Success plans will incorporate several documents and legal strategies that include buy/sell agreements, insurance, independent operational agreements, cross purchase agreements and other strategies that provide extensive options for yourself, your spouse, and your beneficiaries to provide maximum flexibility while protecting and preserving the company you’ve spent a lifetime to establish.
The Watkins Firm has helped business professionals to protect their business and personal interests for decades, and we invite you to contact us for a complimentary consultation at 858-535-1511. We will develop a strategy to protect your interests, while providing a smooth succession plan that ensures that your business will survive and thrive.
