Business owners in California will benefit greatly by engaging in estate planning and developing various beneficial features and protections. The legal instruments that are created can ease the stress and potential complications that family members may encounter upon the owner's death. In addition, a buy-sell agreement can be formulated during the estate planning process.
This agreement will set the terms of succession of the business between employees, partners and family members in advance of the person's death. Life insurance may be purchased to fund post-death transfers of ownership. The individual will also have a will as the central focus of the plan, although in some situations a living trust will be the more central legal instrument and the will, if any, in that event may serve a more minor role.