Estate Planning for Business Owners and Entrepreneurs

Owners of closely held and family businesses face estate-planning challenges that differ from those of employees or passive investors. Much of their wealth may be illiquid and tied up in operating companies; family members may have very different levels of involvement in the business; and disputes over control and succession can threaten both the company and family relationships.

DiTommaso Lubin, P.C. has spent decades representing business owners in commercial litigation, business divorces, and the purchase and sale of companies. Our High Net Worth Estate Planning & Fiduciary Litigation Practice Group leverages that experience to design estate plans that protect both the business and the family.

Integrating Business and Estate Plans

Our work for business owners includes:

• Aligning Wills and Trusts with Business Documents. Coordinating estate-planning documents with shareholder agreements, LLC operating agreements, partnership agreements, and buy-sell agreements so that they work together rather than at cross-purposes.
• Planning for Control and Management. Determining who will manage the business after the owner’s death or incapacity, and how voting and economic rights will be allocated among family members and key employees.
• Addressing Active and Passive Owners. Designing structures that treat active owner-operators and passive family owners fairly, often through different classes of interests or through the use of trusts and holding companies.
• Preparing for Liquidity Needs. Working with clients’ tax and financial advisors to plan for estate taxes and other liquidity needs, including through life insurance, redemptions, or staged sales.

Family Dynamics and Dispute Avoidance

Because we regularly handle business-ownership disputes, shareholder and LLC-member litigation, and estate and trust contests, we are acutely aware of the pressure points that can lead to conflict. Our planning process:

• Encourages clients to think about how decisions on control, compensation, and inheritance will be perceived by different family members.
• Uses clear, detailed language and supporting documents to explain the owner’s intentions and reduce ambiguity.
• Considers mechanisms such as independent directors, advisory boards, or professional trustees to provide neutral oversight where appropriate.
• Anticipates possible future business-divorce scenarios and seeks to build in tools to manage them.

Succession for Multiple Businesses and Investments

Many entrepreneurs own interests in multiple businesses and investments. We help them:

• Map their holdings and determine which assets should pass to which heirs, and on what terms.
• Use holding companies, family limited liability companies, and trusts to simplify and centralize ownership.
• Coordinate succession planning across multiple enterprises, including those in different industries or geographic markets.

Talk With Our Business Owner Estate Planning Team

If you are a business owner or entrepreneur seeking to protect your family and your company through thoughtful estate planning—or if you are involved in a dispute over a business owner’s estate or trust—our attorneys can help.

Contact attorney Peter S. Lubin or attorney James V. DiTommaso for a free consultation.

Call 630-333-0333 or reach us through our online contact form.

This page is for informational purposes only and does not constitute legal advice. Contacting us does not create an attorney–client relationship. Past results do not guarantee a similar outcome.