Business Succession Planning for Corcoran Business Owners

Start with the person and role you have in mind

Before gathering paperwork, consider what outcome you want for the business interest. You might want a particular person to receive it, take on responsibility for it, or help manage decisions if you are unable to do so. Those are planning questions to discuss, not assumptions about what a document will accomplish.

Be specific about the role you are considering. Receiving an ownership interest and making decisions for the business are different concerns to raise in planning. Identify who you have in mind for each, and note any uncertainty or competing priorities. A clear starting point makes it easier to consider how your estate-planning documents and asset ownership fit together.

• Who do you hope will receive the business interest?
• Who might be asked to make decisions if you cannot act?
• Are there other people whose interests or expectations should be part of the discussion?

Make the ownership concrete with an inventory

The next step is to identify what you own and how it is held. Assemble the records you already have that describe your business interest and its ownership. The purpose is to give the planning discussion a concrete starting point, not to assume that a single record answers every question.

For example, if you believe you own an interest jointly or through another arrangement, note what the records say and bring the relevant documents. If you are unsure, mark that uncertainty rather than guessing. An ownership inventory can help identify what property is involved and how it is held.

• List each business interest you believe you own.
• Gather records that identify the interest and show how it is held.
• Write down gaps, inconsistencies or questions you want to resolve.

Coordinate the interest with the rest of the plan

A will, trust, financial decision-making documents and asset ownership can be coordinated as part of estate planning. For a business owner, that means considering the business interest alongside the broader plan rather than treating it as an isolated item.

Bring existing estate-planning documents and explain what you want them to accomplish in relation to the business. The practical question is whether your intended recipient and decision-makers align with the way the interest is currently held and the documents you already have. If they do not appear to align, identify the mismatch for discussion before assuming the plan will produce your intended result.

• Bring any existing will, trust or financial decision-making documents.
• Compare the people named in your plan with the people you are considering for the business interest.
• Flag any change in your wishes or ownership that may affect the plan.

Use the discussion to identify practical limits

Planning can organize your intentions and coordinate documents with asset ownership, but it does not guarantee that a business interest will be handled exactly as you expect in every circumstance. The records may be incomplete, your wishes may change, or the ownership information may not match your understanding. Those issues are reasons to clarify the facts and the intended outcome before settling on a plan.

A useful next step is to bring your ownership inventory, existing estate-planning documents and a short list of questions about who should receive or manage the interest. Codi M. Dada Law Office P.C. can discuss this planning from its Novato office or virtually for clients throughout California.