Business owners in Colorado may be particularly concerned about their futures. Nevertheless, like many other Americans, entrepreneurs frequently do not have wills. When business owners pass away without wills, the results often mean that the companies do not survive. A business may not find a new, eager owner, and it may be more likely to be sold in order to satisfy an equal distribution of the estate among multiple heirs. When people pass away without having made out wills, state intestacy laws determine who will inherit their businesses.
In general, this means that all of a person's assets, including a business, will be distributed among a surviving spouse, children or parents. There can be some complexities in individual cases, from family estrangements to long-postponed divorces, that make this particularly difficult. However, business owners with great relationships with all of their family members still have significant reasons to be concerned about dying without a will. In fact, it could lead to disputes among surviving family members about whether to keep or sell the business and who will receive a decision-making role. Making a plan can help resolve family members' complex relationships with the business.
Estate planning for a business owner involves more than just making a will. Life insurance for the business can be critical to keeping it afloat during the most difficult transitional periods. In addition, making a business succession plan and discussing it with loved ones can help prevent later confusion as well as keep the enterprise on the right track to growth.
The thought of creating an estate plan may initially seem overwhelming or even boring. By working with an estate planning lawyer, a business owner can get a clear understanding of the process while creating key documents like wills, trusts, powers of attorney and advanced health care directives.