What Happens To Your Business if You Die?

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This week I’m answering Amanda’s very good question that I’ve actually started to get asked pretty frequently.

It’s time we sat down and had this unpleasant chat 😏

But before you scroll down to get my freshest legal tip, will you do me a solid?

Head over here and tell me 1 legal question you want me to answer for you in a future issue of Sam’s Sidebar.

OK, now let’s jump into our Legal Q&A Sesh! 👇

The Question // Amanda asks,

Who owns a business if you pass away? does your spouse own it automatically?

The Answer //

Such a good question! And it’s one that I know you probably don’t want to talk or think about — but it’s important.

The important thing to know here is that you actually get to control who gets your business and what happens to it after you die.

Your business doesn’t just dissolve or fade away if something happens to you — but it could if you don’t do something to direct it.

You can leave your business to anyone you’d like. Of course you can leave it to your partner or spouse — but you could also leave it to a friend, neighbor, distant relative or a charitable organization.

The point is: you get to decide.

You can even direct whether you want your business to be sold or not, or if you want your loved one to sell your business and take any proceeds for themselves (or give them to someone or some organization).

But in order to control what happens to your business, you’d need a (properly signed and witnessed) will.

Without a will, your estate will be processed and administered by your state. Your state will then distribute your stuff to your surviving descendants (it could be your children, spouse, etc – it depends on your family makeup and your state) for you.

At least in my humble opinion — you should take the time to control what happens to your hard work. You get that opportunity, so why waste it?

If you need a will, I’d recommend reaching out to a local-to-you estate attorney. Ask what their flat fee is to prepare a will – and let them know you own your own business, too.

If and when you get one prepared, keep it in a safe place and let the executor of your will know exactly where it is (and make sure they have access).

OK – thanks for hanging in with me on this tough topic! I know it’s not the most upbeat thing in the world, but if I learned anything from my Dad passing away and handling his estate — trust me, it’s much easier if you handle these unpleasant things ahead of time.

If you’re working on your business between now and my next issue — I’ve got these goodies already for you:

Hope this was helpful!

What can you legally do, say, teach, and work on with clients as an online coach? Following up on the very popular Episode 2 of On Your Terms, I sat down to answer all your scope of practice questions on the pod!🎙 LISTEN HERE! 🎧

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