Business Succession
Your business is part of your estate plan. These Arizona FAQs from our team cover buy-sell agreements, LLC succession, passing a family business to the next generation, and protecting it from a child’s divorce (6 questions).
Start with our guide
For the complete walkthrough of Arizona business succession — buy-sell agreements, LLC succession under A.R.S. Title 29, family-business transfers, FLP planning, and protecting the business from a child’s divorce — read our complete guide. Then dig into the focused questions below.
Read the Arizona Business Succession Planning complete guideAll 6 questions in this topic
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How should business owners protect their business with an estate plan in Arizona?
Business owners in Arizona should hold their ownership interest inside a revocable living trust, create buy-sell agreements with business partners, and plan for business valuation and succession to keep operations running if something happens to them.
Read full answerMy business partner and I need a plan for what happens if one of us dies. What is a buy-sell agreement?
A buy-sell agreement is a contract between business co-owners that sets the terms for buying out an owner's share after death, disability, or departure. It is typically funded with life insurance policies on the lives of each owner using cross-purchase, entity purchase, or hybrid structures.
Read full answerWhat happens to my LLC if I die and I do not have a succession plan in place in Arizona?
Your death triggers dissociation under Arizona Revised Statutes (A.R.S. 29-3602). Without an operating agreement addressing succession, your heirs receive only a transferable interest with no management rights over your membership interest or business interests.
Read full answerHow do I pass my family business to my kids without it falling apart or getting hit with huge taxes?
Combine a management succession plan with tax strategies like lifetime gifting, valuation discounts, grantor retained annuity trusts (GRAT), and installment sales to grantor trusts. Business owners who start early have far more options.
Read full answerI own a business in Arizona. How do I keep it from being split up if my child gets divorced?
As a business owner, you can protect your business assets from being divided in an Arizona divorce by transferring the interest through a trust, requiring prenuptial agreements, and adding restrictions to your operating agreement. Arizona is a community property state, so planning ahead is essential.
Read full answerWhat is a family limited partnership, and can it help me pass down assets with lower taxes?
A family limited partnership (FLP) pools family assets under a structure with general partners and limited partners. It allows transfers at discounted values for gift and estate tax purposes, reducing your taxable estate when done properly.
Read full answerHave a question that isn’t covered here? Browse the full FAQ index or reach out to our Arizona team.