If I already have an estate plan, why do I need a business succession plan?
Minneapolis attorney Sally Grossman discusses why a business owner who already has an estate plan should consider a business succession plan.
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You need a business succession plan, even if you have an estate plan, and there is a lot of confusion about the difference between the two. There is some overlap. An estate plan is really something that creates the structure and the mechanism for transferring your assets. If you don’t have a buy-sell agreement or a shareholder purchase agreement it will transfer your business assets and all your other assets at death.
So the estate plan normally only speaks at death. The business succession plan is a blueprint and a timetable for transferring the business, so in some ways it’s broader, because it’s going to have deadlines, but in other ways it’s narrower. It only deals with the business and maybe the quasi-business assets.