Coordinated Counsel
Businesses that Go through Probate
Transcript
BARRY:
Number 10 of Chad’s Top 10 is businesses that go through probate. Why is that significant? And I’d like to chime in on this afterwards, but why is that significant to you from your perspective?
CHAD:
I think you’ll definitely be able to elaborate on this one as well, but from a planning standpoint, if the business owner passes away and that business is that family’s biggest asset, and it goes through probate, that surviving family is going to be left in a pretty horrible financial situation.
Unless they’ve done appropriate planning elsewhere. But even with that, there’s no reason for a business to go through probate when it can be avoided with some planning. Similar to shareholder agreements, buy-sell planning, and exit planning.
BARRY:
That’s true. Not bold, not exciting, but it’s the unfortunate reality that when a person passes away and they own the business in their name, it’s going to go through the court system. I think we should do a whole other breakout session on this, by the way. I have a lot to say on the subject.
But going through the court system and probate is a long and unpredictable process. It’s going to divulge a lot of information about the business to a lot of different people, almost public. It can be avoided, it should be avoided. It will definitely disrupt your business and distract you from your focus, and the family who’s waiting on that money is going to be sitting around for a long time wondering what’s going on.
Even businesses that have no money — that are insolvent — I’ve seen last a year because of complications, just to get to the person who needs it. And they didn’t even have any money to distribute. It still took a year because of complications.
CHAD:
Exactly.
Your Business Is Thriving — But What Happens If You’re Not Around?
By: Barry E. Haimo, Esq.
December 11, 2025
Most business owners spend years building something that outlasts them in spirit. Unfortunately, not nearly enough plan for what happens if they’re suddenly not there to lead. The truth is, a thriving business today can easily become a financial and emotional burden tomorrow if ownership and succession plans aren’t clearly laid out.
The Hidden Risk of Doing Nothing
If a business owner passes away without formal planning, their company often ends up tied up in probate. That means court delays, public proceedings, and in many cases, frozen assets that families can’t access for months — or even years. For small business owners whose company represents the majority of their family’s wealth, that can be devastating.
Even worse, the business itself suffers. Employees are left without leadership. Clients lose confidence. Vendors start to hesitate. What was once a successful enterprise can unravel quickly, not because the business was weak, but because the planning was.
Planning Is Leadership
Estate planning for business owners isn’t just about what happens after you die, it’s a continuation of good leadership. The same foresight you use to forecast revenue, manage risk, and guide your team should also protect the future of your business and the people who depend on it.
That’s where tools like buy-sell agreements, trust structures, and succession plans come in. These legal and financial instruments ensure a smooth transition of ownership, establish who has authority to make decisions, and keep the business running without disruption.
Why Coordination Matters
Of course, even the best documents can fall flat if your advisors aren’t on the same page. Your attorney, CPA, and financial planner each see different pieces of the puzzle, but they need to talk to each other to make sure everything fits together.
A well-drafted buy-sell agreement, for example, won’t work as intended if the insurance funding behind it isn’t properly structured. A trust may fail to protect your business if your tax advisor isn’t aware of how ownership is titled. These details matter, and they require communication between professionals.
Don’t Wait for “Someday”
The best time to plan is when things are going well — when you have the time and clarity to make thoughtful decisions. Waiting until there’s a health scare, financial stress, or family conflict only makes the process harder.
Creating a succession and estate plan doesn’t just protect your business — it protects your legacy, your employees, and your loved ones from unnecessary turmoil.
You’ve already done the hard part: building something of value. Now make sure it’s built to last.
Need assistance? We can help.
