Here’s what happens:
Sole Proprietorships: The business stops operating, and debts/assets become part of the owner’s personal estate.
Corporations or S Corporations: The estate becomes the new owner, possibly leading to legal transactions if heirs disagree.
Limited Liability Corporations (LLCs): The operating agreement dictates whether the LLC can continue. If yes, surviving owners may buy out shares or include heirs as new owners.
Partnerships or LLPs: The partnership agreement determines the transfer of shares to the estate. If debts exceed assets, the estate may owe money, and without an agreement, the partnership dissolves upon death.
Debts of the business aren’t the heirs’ responsibility. Personal assets like a family home aren’t typically involved in business inheritance.
It’s important to balance personal grief with legal obligations. Seeking advice from professionals like attorneys can help navigate decisions.
To honor the business legacy, include business details in obituaries and consider memorial events or charitable activities. This helps employees and associates cope and preserves the owner’s memory.
Calling all Corporate Officers.
Estate Planning for Small Business & Families. Call today for a 30 min status checkup.
Will & Trust Central for Fsmilies and Business.
3 locations to serve you better.
855 Boylston Street #1000, Boston, MA 02116
5 Raleigh Road, Marshfield, MA 02050
92 Montvale Ave, Suite 3150, Stoneham, MA 02180
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Freya Allen Shoffner, Esq.
Shoffner & Associates
Counselors to Small Business and Families.
Give Freya a call at (617) 369-0111 TEXT US (413) 207-6219 or email fashoffner@shoffnerassociates.com
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