Understanding Successions and Succession Planning for Business Owners

Successions refers to the process of transferring property, rights or a business from one person to another after death. It involves the legal and financial aspects of transferring ownership, such as paying taxes, settling debts, and distributing assets according to the deceased's wishes or the laws of the state.

In the context of business succession planning, it involves identifying and developing a suitable successor, transferring ownership and management of the business, and ensuring a smooth transition that minimizes disruption to the business and its stakeholders.

Succession planning can be done through various methods such as wills, trusts, gifts, or buy-sell agreements. It is an important aspect of estate planning and should be done in consultation with legal and financial professionals to ensure that it meets all legal requirements and achieves the desired outcomes.