When you own a business, you likely put your blood, sweat, and tears into ensuring your company runs smoothly and your reputation is protected. One thing many forget to consider, however, is what will happen to their business upon their passing. As such, taking the time to understand what can happen during the Probate process is critical. If you own a business, you’ll want to keep reading to learn more about what can happen and why it’s imperative to connect with a Medina County, Ohio Probate lawyer as soon as possible if you are overseeing the Probate of a loved one’s estate.
What Is Probate?
Probate is the legal process in which someone must file upon the passing of the head of an estate. This is so the court can validate the Will left behind and oversee the distribution of the assets. In addition to validating the Will, the courts will also identify beneficiaries, notify creditors, and pay remaining taxes.
It’s important to understand that Probate laws vary from state to state, so it’s in your best interest to connect with an Ohio probate attorney to learn more about the state-specific laws.
How Will Probate Impact My Business?
If your business is held solely in your name, and you do not have the asset in a Trust Fund, your business will be subject to Probate. As such, you’ll find that the assets in your business are at risk of being used to pay off creditors.
This is because failing to have an estate plan or operating agreement means your business can go through the Probate process, as it may be subject to Ohio’s Intestate Succession laws.
Additionally, if there are concerns about fraud regarding your business, the courts may order your business to go through Probate regardless.
What Can I Do to Protect It?
If you are worried about your business going through Probate, there are steps you can take to help protect your assets. Generally, this can be completed by creating a sufficient estate plan. For example, if you have an LLC, you can create a Revocable Living Trust to hold your assets and prevent Probate. Additionally, you may want to alter the structure of the business to a Joint Ownership with the Right of Survivorship so the other owners will inherit the business without enduring Probate.
Additionally, if you are in charge of Probating a loved one’s estate, you may feel overwhelmed by this process. As such, it’s in your best interest to connect with an experienced attorney to help guide you through this process. Probate can be complex and frustrating, as you have many responsibilities and duties to fulfill. Luckily, the team at Krause Law can help guide you through this time. Connect with our firm today to learn how we can assist you during these times.
