What About Steve Jobs's Estate Planning?

Now that Steve Jobs has died there is speculation in the news regarding what place in technology ingenuity Apple, Inc. will play in the future. A less public issue of speculation is what will happen to Mr. Jobs's estate. Mr. Jobs during his life has been private regarding his philanthropy endeavors. Laurene Powell Jobs, Steve Jobs's widow, has very quietly been involving herself with education issues, women's issues, and other philanthropic causes. Two organizations founded by Ms. Powell Jobs are College Track and Emerson Collective. Both organizations strive to help individuals help themselves. Most likely, Ms. Powell Jobs will continue using Mr. Jobs's estate to further philanthropic causes important to both Ms. Powell Jobs and her deceased husband, Steve Jobs.

From our perspective as estate planners, the critical point is that Mr. Jobs seems to have done his estate planning right. We can say this because so little is being said (can be said) about it in the news. It seems everything has been done privately, confidentially, and competently. No news in estate planning is good news.

Here is an article with the Wall Street Journal touching on this issue.

Steve Jobs's Death

Steve Jobs passed away yesterday, Wednesday, October 5, 2011. We want to add our voice in expressing appreciation for what Mr. Jobs did in the field of computers. Our law business has greatly benefited by his products. Here is an article that mentions ten Apple computer products that helped change the world. The Wall Street Journal has a nice article as well. We wish his family well during this time of loss.

Business Succession Must Include Estate Planning

Reading in today's Wall Street Journal about Steve Jobs and Apple's business succession discussions, I was reminded how important it is to include estate planning in any good business succession plan.

There is a fine line in ensuring a business does not die with the originator and making sure the decedent's family members receive their inheritance. One of the best ways to ensure both sides are not harmed at the death of a business owner is to have a buy/sell agreement that includes insurance on the owner(s) of the business. Insurance is a simple way of compensating family members at the death of an owner without forcing the business or other business owners to come up with funds to buy out the deceased owner's business interests.

If the business is a family business, it is essential that business succession include estate planning. At Hughes Estate Group, we have seen situations where siblings that did not stay in the family business and children running the family business fight over inheritance issues involving the business once the owner/parent dies. Estate planning that included insurance to equalize inheritance shares could have prevented these family fights.

There are many issues involving the transition of a business once the owner can no longer run the business. Good estate planning will address those issues and help protect a business from going bankrupt while protecting the rights of heirs. It is important to counsel with an estate lawyer and include good estate planning when considering business succession.

Check out our site here to learn more about business succession planning.