🧾 “Who Gets the Keys?” Do You Really Know? You Better, Because Your State Has a Plan For Your Business.
Why Every Business Owner Needs to Understand Intestate Laws Before It's Too Late.
Disclaimer:
This content is for informational and educational purposes only and should not be considered legal, accounting, or professional advice. If you have specific legal concerns, consult with an attorney or professional advisor.
Most entrepreneurs spend years—sometimes decades—building a business from the ground up. Sleepless nights. Risk. Sacrifice. But far too many business owners make a costly mistake: they fail to plan for what happens to their business when they die.
It’s uncomfortable. It feels premature. But death doesn’t ask for permission—and when it comes, intestate laws take over. And if you're a business owner who hasn’t created a will or estate plan, you may be unknowingly setting up your life's work to unravel in a matter of months.
Let’s unpack why.
⚖️ What Happens When a Business Owner Dies Intestate in Michigan?
“Intestate” simply means dying without a valid will. In Michigan, when this happens, the state steps in and decides who gets what, based on rigid succession laws. If the deceased was a business owner, their ownership interest becomes part of their estate, and it’s distributed like any other asset.
But here’s the rub: intestate succession is not built for business continuity. It’s designed to divide assets, not preserve them.
👨👩👧👦 The Blended Family Trap
Things get exponentially messier when the business owner has children from different marriages or relationships. For example:
The surviving spouse may inherit a portion of the business, while children from a previous relationship may inherit another portion.
That means people who may not even know each other—let alone agree on anything—are now co-owners of your business.
What could go wrong?
Disputes over selling vs. continuing the business.
Battles over leadership, voting rights, or the distribution of profits.
A surviving spouse who has no interest in or knowledge of the business making decisions that could sink it.
Result? The business is choked by infighting, forced liquidation, or a hostile buyout—if anyone even wants to buy.
🤝 The Silent Killer of Partnerships
If you’re in a business partnership, intestacy can be a silent killer.
Without a buy-sell agreement or clear estate plan:
Your partner's heirs may suddenly become your new partners.
A probate court could appoint someone to represent the deceased partner’s interests, even if they have no idea how to run the business.
Your ability to make decisions, manage cash flow, or even sign contracts could be paralyzed while the estate is in probate—which could take months or years.
Imagine trying to negotiate a deal while explaining to a vendor that your late partner’s 19-year-old stepson now has to sign off on everything.
📉 The Financial Fallout
The legal costs, delays, and uncertainty caused by dying intestate can devastate even healthy businesses. Consider:
Business accounts frozen during probate.
Loss of customers, employees, or vendors due to instability.
Declining valuation due to a lack of leadership or confidence.
And let’s not forget taxes. Without estate planning tools like trusts, buy-sell agreements, or business succession plans, your estate could be hit with unnecessary taxes and liabilities that eat away at your legacy.
✅ How to Protect What You’ve Built
If you're a business owner—especially if you have a blended family or a business partner—do not leave your succession to chance. Here’s what you need:
A Valid Will
Ensures your assets go to the people you choose.
A Trust (Revocable or Irrevocable)
Avoids probate, minimizes disputes, and protects confidentiality.
A Buy-Sell Agreement (if you have partners)
Spells out what happens to your ownership interest in the event of death or disability.
Business Succession Plan
Identifies who will run the business and how ownership will be transferred.
Durable Power of Attorney & Medical Directives
So business operations don’t grind to a halt if you’re incapacitated.
🚨 Final Word: You Built It. Protect It.
Your business is more than a paycheck—it’s your reputation, your family’s future, and your community’s economic engine. Failing to plan isn’t just irresponsible—it’s dangerous. Especially if you love your family, your employees, and the people you serve.
Intestate laws won’t protect your legacy. But you can.
If you’d like help taking the next step—whether it’s drafting a will, exploring trust options, or developing a succession plan—let’s connect. Your future deserves more than a probate court’s guess.
🛑 People Don’t Rehearse Funerals.
Let’s talk about building a real plan—not just paperwork—but a strategy that ensures your business survives and thrives long after you're gone.
📞 Call JuJuan Buford directly at 888.549.9689
🌐 Visit jsbbsg.com to schedule a consultation
📧 Email: jsbuford@thebufordco.com
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