In addition to family responsibilities, Colorado business owners also have a responsibility to their customers and employees. Customers depend upon the business owner to provide a necessary product or service; employees depend upon the business owner to provide their livelihood. For this reason, proper estate planning can be crucial in protecting both customers and employees in addition to loved ones.
In addition to a will, the business owner may be best served by creating a revocable living trust. Business assets can then be placed in the trust, and a trustee can be specified. In many instances, the business owner will be the trustee; however, a successor can also be named in case the owner becomes incapacitated or dies. This action will allow the business to continue with little interruption, can minimize questions regarding what course of action to take and may offer protection from creditors.
Another document that the business owner may want to consider as a part of the estate plan is a buy-sell agreement. This document can be used to provide a clear succession of business interests when the time comes. Again, such a document can minimize questions and dissention while providing security to employees and customers.
Estate planning is important for all Colorado residents. However, when the individual has others dependent upon him or her, it can be even more important. Through the use of various estate planning tools such as a will, revocable trust and perhaps even a buy-sell agreement, the business owner can take steps to ensure that the business continues even after he or she is no longer able to make this happen.