What To Do If A Business Owner In South Carolina Passes Away Without A Succession Plan

In this article, you will discover:

• Who legally controls your business if you die intestate in South Carolina.
• Whether your spouse can run the business if you die without a will.
• How probate affects your business if you die intestate.

Who Legally Controls A Business When The Owner Dies Intestate?

When a business owner dies intestate, the first recourse is to the LLC operating agreement or the business’s charter. If neither of these options exists, the intestacy statute will typically apply, making the spouse the first choice to legally take over the business. However, you must go to probate court to make that happen.

Can A Surviving Spouse Step In And Run The Business?

If you’re a surviving spouse, you can run the business only if an operating agreement or the corporation charter allows you to do so. Otherwise, you must file with the probate court for the estate. Then, the judge will appoint you as the personal representative. You can run the business with that title.

How Does The Probate Process Affect Business Operations?

If there is no external agreement, the probate judge will typically appoint the spouse as the personal representative. The judge would oversee the management of the business.

What Happens To Employees During The Probate Process?

Hopefully, the employees will continue to run the business under the supervision of the probate judge or someone else appointed by an external agreement.

What Happens To Business Debts And Liabilities If There Is No Succession Plan?

Business debts must be paid. The person appointed by the probate court or by an external agreement would be responsible for handling business debts.

What Steps Should I Take Now To Avoid These Problems Later?

You should create a succession plan through a trust or external document. In either case, you designate what you want to happen upon your passing and appoint someone to manage the business.

Still Have Questions? Ready To Get Started?

For more information on business succession in South Carolina, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.