What Happens to My Incorporated Business When I Pass Away in Massachusetts?

If you are running a business in Massachusetts, you may have chosen to incorporate. This can be a solid choice for many reasons, including tax benefits and limited liability. But what happens to your business after you pass away? How does this type of business affect estate planning, your surviving family members, and other things of that nature?

The most qualified person to answer these questions is an attorney who has experience with estate planning. Our legal professionals can help you make the best choice for your incorporated business while planning effectively for the future. While this topic can get a little confusing, it is much easier to deal with if you have an experienced, qualified estate planning attorney on your side.

Your Corporation Will Live On
One of the most interesting things about a corporation is that it is considered a separate entity. If you pass away, your corporation will not automatically cease to exist, and it will live on. This is not the same as a sole proprietorship, as the business entity will die when you pass away in this situation.

Who Inherits the Business?
If the corporation does not die, then who inherits control? That is a tricky question, and it is one of the many reasons to enlist the help of a qualified attorney in this situation. Generally speaking, your executor first takes control of the business after your passing. This individual may also be responsible for day-to-day business decisions while also handling your estate. However, this is really only a transitory period, and your ownership of your corporation will then be distributed to your heirs.

Consider the Most Logical Choice
If your corporation is a very small business, then you might want to encourage your beneficiaries and family members to sell the business following your passing. This may be a particularly good idea if you are the only one who has the necessary skills to run the company. You can leave the business to someone you trust in your will, and this individual can sell the business or distribute the funds in a way that generates income for the family. You might also consider a trust. A testamentary trust allows a trustee to manage the business while distributing profits to the heirs. In any case, there are many options if you would like to handle your corporation in the most effective manner during the estate planning process.

Enlist the Help of a Qualified Attorney Today
If you have been searching the Massachusetts area for a qualified, experienced estate planning attorney, look no further than The Law Offices of Johnson, Sclafani & Moriarty. We know that many individuals may not be exactly certain about what happens to their incorporated business after their passing, and we are ready to explain these topics in a clear, concise manner. Even better, we can help you move forward with your estate plan and ensure that your business is handled effectively after your passing. Reach out today, book your consultation, and explore your legal options. Call us now! 413-732-8356