Exit Planning- Leveraging Buy-Sell Agreements

a hand signing a buy sell agreement during exit planning

This article is for you if, as an owner, you are concerned about what happens when you leave your business, specifically in the event of a disability, death, or other triggering events. Concerns include income replacement, continuity, and tax consequences. One common contingency plan is a buy-sell agreement, also known as a buyout agreement or business prenup. It is a legally binding contract between two or more business owners that outlines how a partner’s share of the business entity can be distributed if the partner dies or leaves the business. In the case of a sole proprietor, the agreement may designate a key employee as the buyer. It’s an important part of establishing a business entity and can help smooth ownership transitions. Buy-sell agreements are important parts of exit planning. As is said in many contexts, failing to plan is planning to fail. Without one, there can be chaos when an owner or partner retires, dies, or otherwise exits the business.

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Family-Owned Business Exit Planning: A Strategic Guide for Succession

Father and Son navigating family transition in exit planning

Family-owned business exit planning is like making a gameplan for the future. It’s all about figuring out how to pass on ownership and management of the business to the next generation or an appropriate party while making sure it stays successful in the long run. Some of the key components to exit planning include goal setting, financial planning, legal and tax analysis, continuity planning, and succession planning. These steps can be simple or intricate, depending on your style and comfort level, and could involve professional advisors if there are skills that you need to gain in your background. At a minimum, core values and a mission statement should be contemplated.

There are unique challenges where a business is family-owned, or several members of the family are involved in operations. There may be sensitive family dynamics or conflicting interests. There may be obstacles stemming from legal structures to practical considerations. Expect the unexpected in situations where formal rules and record-keeping are eschewed.

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Exit Planning: The Business Owner’s Guide to Transitioning on Their Own Terms

Business owner exit plan

Operations, strategy and planning, financial management, marketing and sales, human resources, and risk management occupy the minds and agendas of successful business owners year after year, decade after decade. The steps it takes to transition away from a business are alien to these, are complex, and vary greatly depending on the circumstances of the business and the owners. Where demanding circumstances are present in the business’s life cycle, exit planning is challenging at best. It is next to impossible to tear oneself away from the rigors of running the business and sustaining growth to deal with transition issues.

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Understanding a Living Will and It’s Importance: The Distinction from Durable Power of Attorney

Living Will declaration

Living wills and durable power of attorney are both legal instruments that your attorney can incorporate with your estate plan to help you make end-of-life decisions, which are choices and actions that individuals make or that are made on their behalf when they are facing terminal illness, critical medical conditions, or the end stages of life. These decisions often involve medical, ethical, and emotional considerations.

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Estate Planning Tools Used with a Trust

white paper with the words "Estate Planning" printed on it. And a pen and glasses resting on the paper

Estate planning is vital for managing your assets, securing your legacy, and providing for the well-being of your loved ones after your passing. For many people, the core legal instrument in their estate plan is the trust. In addition to the trust, the use of several estate planning tools provide benefits. Those include power of attorney, pour-over wills, beneficiary and guardianship designations, advanced healthcare directives, and at a more advanced level for high net worth estates, family limited partnerships, family limited liability companies, qualified personal residence trusts, and generation-skipping trusts.

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Planning for the Future- How a Trust Can Protect Your Child’s Inheritance

Parent giving a child a key to symbolize a trust

In most cultures and families, leaving an inheritance is a way to support future generations, offer financial stability, and potentially ease their path in life. Some families may prioritize charitable giving or other causes over providing a large inheritance. Of course, the significance of providing an inheritance for your child can vary based on individual beliefs, values, and circumstances. If protecting your child’s inheritance is something you feel is essential, you are in the right place to find help to begin planning your trust!

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The Ultimate End of the Year Estate Planning Checklist

business professional checking his end of the year estate planning checklist

End of the Year Estate Planning Checklist

Did anything change in your professional or personal life this year? If not, that may be a good thing, especially if you have achieved your goals and are set up for retirement. If you experienced changes, including family changes, career shifts, or laws change, a yearly estate plan review is crucial to ensure that your plans remain aligned with your current situation and goals. It will also take advantage of law changes that benefit you: this might include favorable tax treatment or protection when headwinds appear. In this post, we will look at several elements that should be part of your end of the year estate planning checklist. Some of these are actions that you can take without financial or legal professionals, and some require expertise.

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Exciting Developments Unveiled: Lowthorp Richards and The Hathaway Law Firm Forge a New Legal Legacy in Ventura County

Lowthor Richards Merger Announcement

In a monumental shift that will reshape the legal landscape of the Central Coast, we are thrilled to announce the impending merger of two esteemed law firms within Ventura CountyLowthorp, Richards, McMillan, Miller & Templeman, and The Hathaway Law Firm, LLP. This transformative union is scheduled to take effect on January 1, 2024, giving rise to the start of a dynamic legal entity, Lowthorp Richards, LLP. Prepare for a new era of legal excellence and continued client-focused service.  

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Estate Planning for Blended Families

blended family stacking hands on table

Estate planning plays a vital role in ensuring that your wishes are carried out during your lifetime and after your passing, and it is often a source of fulfillment and contentment. The ability to contribute to the well-being and happiness of family and community in the near and long term is cherished and vital. Estate planning grows in terms of complexity the more extensive the household and family members involved. The challenge increases when considering the unique needs of all family members, including step-parents, step-children, and biological children. In the case of intricate family dynamics, it is essential to seek the counsel of an attorney to examine the specific needs of blended families and create an estate plan that meets those needs.

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Estate Planning During a Divorce- What to Know

two pairs of hands sitting across from each other discussing estate palling through a divorce

During the process of a divorce, having trusted legal experts to consult with is an invaluable reassurance. They can help you navigate the legal and financial aspects of the divorce and ensure your estate plan aligns with your post-divorce goals. While it is recommended to review your estate plan annually, the current situation calls for a review and a potential update.

During a divorce, it is crucial to seek advice from legal, financial, and estate planning specialists, such as divorce attorneys and estate planners. They can help you navigate the legal and financial aspects of the divorce and ensure your estate plan aligns with your post-divorce goals.

Specific tasks they can perform include reviewing and updating beneficiary designations on your life insurance policies, retirement accounts, and any other assets with named beneficiaries. They will make sure the designated beneficiaries reflect your post-divorce wishes. If you have a will or trust in place, you will likely need to revoke or amend it to account for the divorce. This may involve naming new beneficiaries, trustees, or executors.

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