What happens to my business after I die? Is my business covered in my estate plan?

If you have a small business interest, such as a sole proprietorship, partnership, closely-held corporation, or  LLC, you may be able to include your business in your estate plan. Assuming there are no transfer restrictions, you can designate certain beneficiaries in your estate plan to become involved in the business upon your death or disability. Note the subtle, yet important difference from succession planning (discussed above). Also, note that including your business into your estate plan involves a review of the articles of incorporation/organization or any partnership agreements in order to identify any transfer restrictions imposed by law or the agreements governing the business in addition to buy-out provisions. 

Again, assuming there are no transfer restrictions imposed by law or agreements governing the business, you can strategize the disposition of your business interest to certain beneficiaries. In addition, there are certain tax issues which need to be considered when planning for the disposition of your business interest. Oftentimes the most successful planning occurs with the collaboration between your financial advisor and attorney.