All Texas business owners should have a will. As the owner of a company, you are the one who is intimately involved in day-to-day decisions. These are choices that affect every aspect of your present and future. You don’t want to die while leaving your company and heirs in a bind.
What happens when you don’t leave a will
Business law provides for a number of scenarios to play out when the owner of a company dies. If you are operating under the guise of a sole proprietor, the business will generally cease to exist when you do. If you were part of an LLC, your share will usually now be represented by your estate.
But if you do not leave a will, the future of your heirs can be thrown into confusion. If there is no authoritative document, the remaining assets related to your ownership of the company will usually be distributed according to state law. This is a situation that can lead to a lot of financial and legal discord.
Leaving a will helps avoid future issues
Drawing up a will is one of the best things that a business owner can do to protect the financial future of their heirs. This is a document by which you can help them quickly resolve such issues as ownership, responsibility for debt, and many others. It’s the master plan that you leave behind for your heirs to prosper under.
If you are unable to leave clear instructions to your remaining partners regarding the distribution of your assets, the state will step in to do it. It’s better to draw up a plan where your heirs can elect to be part of the business going forward. If they choose not to, they can then be bought out at a profit.
Additionally, not having a will would likely cost you thousands in the probate process.
With a will, you have the power to have a say in how the company goes forward after you pass. Without one, you leave your heirs struggling to make hard decisions that they may end up regretting.