You may have put some thought into what you want to include in your Michigan will, but if you own a business, there may be factors that you are not sure how to handle. For example, determining whether your child should run your company after you are gone may be difficult on a business level, but it could also be an emotional decision. At the Bingham Legal Group PC, our team often provides entrepreneurs with answers to this type of succession plan question.
Entrepreneur Media explains that if you want to name your child as successor in your will, it may benefit both of you to begin training him or her in the basics of the business. This gives you a chance to raise the company’s likelihood of ongoing success after your death, and it also allows your child to test the waters and see if this kind of work is something that can be undertaken in the long-term.
Your child may prefer to retain ownership without stepping into an active role in the business. In that case, you may want to consider whether it would be best to name a successor who already works for you, or recruit someone from outside of the company. Having a plan in place may help sidestep some of the tax issues that may arise after your death, and may ultimately keep the business profitable so that your hard work continues to benefit your heirs long after you are gone. More information about your end-of-life plan for your company is available on our web page.