For many Pennsylvania business owners, addressing the issue of how to pass on their business to the intended heirs is a top priority. There are a number of options for transferring business interests, all of which share the risk of probate litigation. Finding a solution that minimizes that risk is essential to preserving wealth for one's heirs. As with so many estate planning matters, having a clearly outlined plan in place is the best way to begin.
No matter if a business is family owned, closely-held or publicly-held, there is a potential for legal wrangling over the distribution of assets. One way to address this risk is to create a clear buy-sell agreement. This agreement outlines the value of a business and determines a plan for distributing assets to the proper parties. This approach gives business owners a great deal of control over how their business will be handed down to loved ones.