An estate plan for your business can control the transfer of your business or its value to the next generation. Estate planning allows you to make gifts, ensure business continuity, and avoid taxes. Your plan of action will depend upon whether you want to transfer control of your business interest before or after death and whether you are transferring a functional business to a successor or liquidating your interest and giving the proceeds to beneficiaries.
A basic estate plan addresses what happens to your property and your children when you die. But estate plans can go even further. They can also plan for your incapacitation, such as if you’re in an accident or become ill and can no longer take care of your own affairs. Estate plans are not a single document, but a whole collection of documents that you put together to deal with a variety of circumstances.