Estate Planning for Business Owners

If you pass away without a will or trust, your business interest becomes part of your probate estate, and Maryland’s intestacy laws will determine who inherits it—usually a spouse or children. However, they may:

• Lack the knowledge or desire to run the business
• Disagree on what to do with it
• Struggle with legal or tax obligations
• Be unable to access business accounts or sign contracts

Without a clearly named successor, your business could stall or shut down, and its value may rapidly decline. With proper estate planning, you can pre-authorize who takes over, avoid probate delays, and ensure a smooth transition.

We use several strategies depending on your goals:

• Gifting shares or units during your lifetime, using annual gift exclusions or lifetime exemptions
• Creating a revocable trust to hold business interests and direct distribution
• Establishing a family limited partnership (FLP) to control, protect, and gradually transfer business assets
• Creating a succession plan that trains a child or heir to step in and lead the company

We tailor the method to your company’s structure, your family dynamics, and your timeline. This prevents disruption and provides a long-term roadmap.

Yes, but only if your estate plan and your operating agreement or partnership agreement work together. Without proper planning, your share could pass to a spouse or children who are not involved in the business, creating tension or legal risk.

We often recommend a buy-sell agreement, which:

• Requires your co-owners to purchase your share if you pass away
• Sets a fair method for valuing the business
• Can be funded with life insurance for liquidity

We review your current documents and align your personal estate plan with your co-ownership structure so there are no surprises.

Absolutely. Placing your business interest in a revocable living trust can help:

• Avoid probate delays or public court filings
• Maintain continuity in business operations
• Clarify who has authority to manage or transfer ownership
• Reduce legal fees and minimize disruptions

If your estate is large, irrevocable trusts may also help with estate tax planning, though they require giving up some control. We advise you on the best trust structure to balance control, privacy, and protection.

Yes. The earlier you start, the more options you have. Unexpected incapacity, illness, or death can occur at any time—and without clear legal instructions, your business could face:

• Temporary shutdowns
• Leadership voids
• Loss of clients or contracts
• Conflict among heirs or partners

By planning now, you retain control over who runs the business, how it's valued, and who benefits from it—without rushed decisions later. We build flexible, updatable plans that evolve with your business lifecycle.