I hear some interesting statements as a Burbank estate attorney. Guess what I heard the other day? Someone told me: “I already have an LLC, so my business is protected.” Here’s why every California business owner needs an estate plan.

Immediately, I told them that wasn’t always the case. As someone who works with business owners throughout Burbank, Los Angeles, and Southern California, I know that the unforeseen can happen when people least expect. And when your business is your main money-maker and the vehicle that keeps your family afloat, you don’t want to jeopardize it.

If you own a business in California, your estate plan isn’t complete unless it addresses what happens to that business if you become incapacitated or pass away unexpectedly. Surprisingly, many successful business owners don’t have a contingency plan. They may have operating agreements, business insurance, accountants to manage finances, and employees for support,

but many don’t have a clear plan for who steps in when they’re no longer able to make decisions.

At Best Coast Estate Law, we help business owners do just that. 

Your Business Is Your Most Valuable Asset

When people think about estate planning, they usually think about their houses, bank accounts, and retirement funds. But for lots of entrepreneurs, their business is actually the most valuable thing they own.

Whether you’re a contractor, consultant, physician, real estate professional, agency owner, restaurant owner, production company owner, or creative entrepreneur, your business likely represents years, if not decades, of hard work. It could also represent a significant percentage of your family’s net worth.

As an experienced Los Angeles estate lawyer, I often remind business owners that if their estate plan doesn’t account for their business, it’s incomplete.

What Happens If You Die Without a Business Succession Plan?

This is where things can get messy. Let’s say you own a successful business in Los Angeles County. You have employees, clients, contracts, and money coming in each month.

Then something unexpected happens. Who signs the contracts, and pays the employees, and accesses business accounts, and communicates with clients, and makes operational decisions?

Without proper planning, a business can face severe legal issues. As a Los Angeles estate lawyer, I’ve seen families discover that inheriting a business is far more complicated than inheriting a bank account. The business may continue to have obligations even while the estate is being settled. The absence of a business succession plan can create chaos during a period when your family is already dealing with grief.

Business Succession Planning Is Estate Planning

Many people view business planning and estate planning as separate subjects. But they’re not. And, they should work together. A strong estate plan coordinates:

  • Personal assets
  • Business interests
  • Family goals
  • Long-term succession plans

Some business owners can transition the business to a spouse. For others, it means transferring ownership to children, or involving key employees, business partners, or an eventual sale.

Every business is different, but every business owner should have a succession plan. As a Burbank estate lawyer, one of my goals is helping clients think beyond legal documents and start thinking strategically about continuity.

What If You Become Incapacitated?

Interestingly, incapacity is often a bigger risk than death. Most business owners focus on what happens if they die, but far fewer think about what happens if they are unable to manage the business for six months.

Who has authority to act on behalf of the company? This is one reason powers of attorney are so important. Because Best Coast Estate Law is a successful estate planning law firm in Burbank, we regularly help business owners create authority structures – like a power of attorney – that allow trusted individuals to step in if necessary.

Estate Planning for Entertainment Industry Entrepreneurs

Because I practice in Burbank, Palm Springs, and Los Angeles proper, I also work with many clients connected to the entertainment industry. For these actors, producers, writers, and directors, estate planning becomes even more important because intellectual property often generates income long after the work itself is completed.

An entertainment professional’s estate plan should address not only who inherits their residual assets, but also who manages them and how they are protected. This is one reason business owners and creatives often seek out an experienced California estate lawyer who understands both estate planning and complex asset structures.

What If Your Family Doesn’t Want Your Business?

This is a conversation many owners avoid. Many business owners assume their children will want to continue the company. But if they don’t, I can create an estate plan that creates options. A strong succession plan can account for:

  • Family ownership
  • Third-party sales
  • Employee transitions
  • Management succession

The Best Time to Plan Is Before You Need It

One of the things I tell business owners most often is that estate planning works best when nothing feels urgent. The ideal time to create a business succession plan is while you’re healthy, engaged, and actively involved in your company. When people wait until retirement, illness, or crisis, their options often become more limited.

A Lawyer for Business Owners

If you own a business, your estate plan should do more than distribute assets. Whether you own a small local company, a growing professional practice, a production company, or a successful family business, estate planning is one of the most important investments you can make.

At Best Coast Estate Law, I help business owners throughout Burbank and Los Angeles create estate plans that address both family and business goals. Call me for a free consultation.