Estate planning involves the facilitation of postmortem asset transfers, but this is not the only consideration. Asset protection should also be a priority so you can preserve what you have earned.
With this in mind, if you own a small business as a sole proprietor, your personal property would not be protected if the business is sued. This is an unnecessary risk because there are relatively simple asset protection solutions that can be implemented.
Limited Liability Company (LLC)
A estate taxes.
Succession Planning for Business Partners
You can use a buy-sell agreement as the foundation of your business succession plan, and this can involve the use of life insurance. If you execute the cross-purchase plan, all the partners would agree on the value of a share in the business.
They would take out insurance policies on one another that are equal to the value of a share. When a partner dies, the proceeds would be collected, and the money would be used to buy the deceased partner’s share from their estate.
This is an estate planning scenario, but these agreements can facilitate exits for retirement or any other reason, and the funding can come from another source.
Schedule a Consultation Today!
If you are ready to work with a Glastonbury or Westport, CT estate planning attorney to put a plan in place, we are here to help. When you choose our firm, you will feel comfortable from the start, and we will work with you to develop a custom crafted plan that ideally suits your needs.
You can schedule a consultation appointment right now if you call us at 860-548-1000, and you can use our contact form if you would rather send us a message.
Mr. Nirenstein is licensed to practice before the courts of the State of Connecticut and the United States District Court. He is a member of the Connecticut and Hartford County Bar Associations, and the Estate and Probate, Elder Law, Business Law and Real Estate Sections of the Connecticut Bar Association.
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