According to a Caring.com survey conducted in 2017, 58 percent of adults in Colorado and throughout the country don't have a will. This can be problematic for a number of reasons. First, an individual no longer has control over what happens to his or her assets or who cares for any minor children left behind. Next, the lack of a will could lead to a greater risk of family infighting over how the estate should be divided.
Finally, businesses that deceased owners spent years building could no longer be viable, which may mean that the family loses a key source of income. This is because family infighting could cause a leadership vacuum to form. It is also possible that key documents or other tools needed to run the company won't be accessible to heirs or key business partners.
Ideally, a business owner will create a succession plan that outlines what happens to the organization after he or she steps aside. For instance, the plan could include instructions to sell the company when the current owner dies or that it be transferred to another family member. A buy-share agreement clarifies what happens to the portion of a company a deceased person owned, how much it is worth and who is allowed to acquire it.
Most people benefit from estate planning regardless of the type of assets that they own. For business owners, an estate plan may make it easier to sell or transfer the company in an orderly and timely manner. It can also make it easier to do so without a legal challenge or fighting among family members for control of the company or other assets. An attorney may help to create an estate plan or look over any plan a person has already made.