Fairfield County Business Succession Planning Attorney

Business Succession Planning Attorney in Greenwich, Stamford, Darien, Westport, Fairfield, Trumbull, New Haven and Milford

A business succession plan provides for the orderly continuance of a business. For example, a family limited partnership could be created to make the transfer easier, while you retain control of your business. In a partnership among non-family members a plan can be worked out for buying out partners through the use of insurance so the business continues smoothly and the estate of the partners who have passed is compensated for the full value of their interest. For assistance with business succession strategies you are urged to contact a Fairfield County estate planning lawyer for assistance.

Business Succession Strategies

Where you have a family business, you may provide asset protection with a Limited Family Partnership. You set up a partnership giving children a limited interest. The interest gives them no control of the business, and only a part interest in the company's value. You may have to pay a gift tax depending on how quickly you pass the interest to your children and the size of the interest, but it is generally devalued because the children have no control and cannot sell their interests. When you die, children's shares attain full value as they now control the business. Furthermore, they pay no estate tax on the interest they already own.

When you are a member of a partnership, you may be concerned about another partner dying. You may not want the deceased partner's family intruding into your business. The solution is to set up a procedure for the remaining partners to buy out the interest of a partner when he dies. First, an agreed upon value of the business is established by appraisal, and a Buy-Sell Agreement or Buyout Agreement is put in place. Then all partners buy a life insurance policy on each other. When a partner dies, the partners use their life insurance policy proceeds to buy out the share of the deceased partner at the agreed upon rate.

Business Succession Planning Lawyer Attorney in Connecticut

At Massih Law, LLC, I provide business succession law services to clients throughout Fairfield County and New Haven County including, but not limited to, Greenwich, Stamford, Darien, Westport, Fairfield, Trumbull, New Haven and Milford. I, John N. Massih, can devise and craft business succession strategies to fit a client's circumstances. I would be happy to meet with you and discuss your business situation, and assist you in determining the best business succession plan and an effective strategy to avoid legal or business problems for your business partners or even your loved ones in the future.

Contact a business succession planning attorney at the firm to discuss business succession strategies.