Jennifer C. Rydberg, Attorney at Law
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Business succession planning is critical for Washington residents

Business owners in the Kent area have worked hard to grow and maintain their business. Business owners are proud of what they have accomplished, but if they haven't planned for what will happen in the future, everything can unravel after they die.

Over 50 percent of small business owners are over the age of 50. With the aging population of business owners comes the planning necessary to make sure their business continues to succeed for many years to come. Preparing for what is to come for a family business can make the difference between them going out of business or continuing to operate. In a business succession plan, there are several items that are addressed. These may include the importance that the family continues to run the business, future cash flow needs for the business, what happens if there is an unexpected death, divorce, or incapacitation of the business owner, and tax implications for transferring business assets to family members.

If there isn't a business succession plan, significant challenges can occur if the owner dies or becomes incapacitated. Oftentimes there is litigation between family members and sometimes between the estate and the IRS. An attorney who specializes in estate planning can make sure their client has a business succession plan that protects their assets and their family. An attorney understands how important their client's business is to them and their family and will make sure that it is protected both now and for decades to come. Having a business succession plan in place can create peace of mind for the family and help ensure that they will not have to face a disaster.

Being a business owner is a great responsibility, but, most business owners wouldn't trade it for the world. Having a business succession planning for future generations in case of an unforeseen event is smart thing to do.

Source: nevadabusiness.com, "Business succession planning: Do it now, before it's too late", Oct. 1, 2017

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