Talking about death is difficult. However, determining what you want to happen to your property after death is essential, especially if you own a business, including many family-owned and privately held businesses here in Shaker Heights and the greater Cleveland area. What happens to a business when the owner dies? This complex issue is addressed in a specific guide, “What Happens to a Business When the Owner Dies? A Guide for Shaker Heights & Northeast Ohio Business Owners,” helping to navigate potential challenges. Without an estate plan, the future of the business – including its employees, clients and value – can be lost. A recent Forbes article, “Estate Planning: Why It’s Never Too Early for Business Owners To Start,” explains why business owners should have an estate plan as soon as they have a business.
Estate planning is done to protect wishes not just after death. It is also undertaken if the business owner is incapacitated and unable to make decisions during their lifetime. Most estates are comprised of real estate, investments, insurance, debts, personal belongings and digital assets.
For the business owner, estates also include ownership shares, intellectual property, accounts and contracts. Business owners should also ensure that their operating agreements, bylaws, or shareholder agreements allow for shares to transfer to a trust without violating entity restrictions. Clear instructions should be provided in a succession plan, created in alignment with the estate plan. Who will manage the business? Who inherits the business? How are shares to be transferred, and how will operations continue? All these need to be addressed to ensure the business’s continuity, especially under Ohio law. In many cases, the business should also be placed inside the owner’s asset-protection structure (such as a trust) to shield the company from outside-in liability risks.
Here is an outline to get started:
Inventory assets and debts. Record everything owned and owed: real estate, financial accounts, insurance, valuables and digital assets. Appoint a digital fiduciary for passwords and digital asset accounts. Business owners need to provide all details, including company ownership, contracts, debts, where records are stored and how to access them.
Create a will with an estate planning attorney. The Living Will is used to outline medical wishes in case of incapacity. A healthcare power of attorney is needed. A durable power of attorney authorizes a person to manage financial and legal matters. A Last Will and Testament directs the distribution of a person’s belongings and the care of their dependents. It names an executor to administer the will and a guardian to care for minor children.
A business owner’s will addresses who inherits or manages shares, how voting rights are exercised and whether heirs should retain their shares or sell them. Be sure the will is coordinated with any buy-sell agreements to avoid disputes, which is especially important for businesses in Ohio structured as LLCs, partnerships, or S-corps.
Identify beneficiaries. Anyone named as a beneficiary on an account receives the assets, regardless of what is in the will. These are usually on insurance policies and financial accounts. Keep designations up to date and consistent. Review after major life events to be sure that the primary and contingent beneficiaries are correct. Business owners should coordinate beneficiary designations with shareholders or partnership agreements.
Evaluate the need for trusts. Trusts allow assets to be passed with specific instructions outside of the probate estate. Revocable trusts offer flexibility, irrevocable trusts may provide tax benefits and charitable trusts support organizations while reducing the taxable estate. Some business owners also choose to hold company shares in a single-purpose irrevocable pure grantor trust to smooth succession, preserve liability protection, and maintain business continuity.
Business owners may use trusts to guide share transfers, shield assets, reduce taxes and provide liquidity for taxes. In a family business, they can prevent conflicts by clearly defining roles and ownership.
Meet with an experienced estate planning attorney who works with privately held businesses to create a plan that protects both people and the business. Estate planning is less about distributing wealth than protecting loved ones, preventing conflict and leaving a legacy of clarity for families and business owners in Shaker Heights, Cleveland Heights, Pepper Pike, and across Northeast Ohio. This includes reviewing corporate formalities, entity structure, and choosing the right “bubble and box” strategy to protect both the company and the family.
If you’re a business owner in Northeast Ohio and haven’t created a succession or estate plan yet, book a complimentary call with us. We’ll help you protect your business, avoid family disputes, and keep operations running smoothly.
Reference: Forbes (Oct. 13, 2025) “Estate Planning: Why It’s Never Too Early for Business Owners To Start”
