Avoid Probate Problems in Your Business

If you have been part of a business for any length of time, it is likely you have heard stories about probate problems plaguing family members, generally the successors or remaining business partners.  Probate typically entails open court battles, lengthy delays, and large expenses; however, the root cause can be traced to a faulty estate plan.  Problems arise when a decedent leaves an array of difficulties for the probate court to untangle.  Below are ways to avoid a messy business outcome after you are gone:

• Trusts.  If you have your business interest correctly titled in a living trust, the business will avoid probate. 
• Real Estate.  Probate can be avoided by titling the real estate in joint ownership with right of survivorship, in a life estate, or with a transfer on death deed.
• Business Continuation.  Create a predetermined business continuation plan.  This is one of the most crucial steps a business owner can take regarding the disposition of the business at death.

See Steve Parrish, Five Ways Business Owners Can Avoid Probate Problems, Forbes, May 4, 2015.