Do you have a succession plan in place for your business?
By Beth Newcomb
There’s an important part of estate planning that most people who own businesses tend to overlook, says Jay Nabors, an attorney who concentrates in estate management along with his wife, Linda. Jay and Linda took over the legal practice formerly managed by John J. Urban.
“Having John scale back on his involvement in the business prompted us to take a closer look at our own succession plan,” Jay says. “But a lot of people who own businesses never think about it. They get a will, a living will and the powers of attorney, but they don’t make sure their business documents are in order.”
Jay references the situation of a man who was a partner in a business before unexpectedly passing away.
“He had no will and he’d never expressed his wishes to anyone. The wife felt she was entitled to the business, but the children shared that sentiment. Just because there is a spouse in the mix doesn’t mean he or she automatically gets the company,” Jay states.
“It cost the family a considerable amount of money to sort out the details, and in the meantime the business could have gone under because there was no one able to make the decisions.”
Putting the proper succession documentation in place is critical for the future of your business, and to make sure your heirs receive what’s coming to them, Jay says.
“Make sure your corporate minutes are up to date, your operating agreement for an LLC is up to date and that the share or unit certificates are set up to avoid probate,” he advises.
“We can help you put the documents in place.”
Nabors & Nabors offers Mimi readers a free legal services consultation in person or on the phone, with services at a contracted discount rate. Mention this story when you schedule an appointment. House calls and select evening appointments available.
To reach the attorneys at Nabors & Nabors Ltd., with John J. Urban of counsel, call 440-846-0000, ext. 227. The offices are located at 11221 Pearl Road, in Strongsville. Visit the website at Nabors-Law.com.