How do I document my business succession plans?

Business succession planning is among the most complex aspects of estate planning, yet it is often completely overlooked until crisis hits. Whether you own a small sole trader business or are a major shareholder, comprehensive documentation is crucial.

Start with comprehensive business ownership documentation: business structure (sole trader, partnership, private company, trust), registration details (ABN, ACN), ownership percentages, key governing documents (partnership agreements, company constitution, trust deeds), and relationship between business and personal finances.

Document all business accounts and financial information: business bank accounts, business credit cards and lines of credit, merchant accounts and payment processing, business loans and their security, accounts receivable, accounts payable, recurring revenue streams, and business valuation if available.

Create detailed operational documentation: key client information and relationship history, vendor and supplier contacts, employee information if you have staff, standard operating procedures for critical functions, location of important business files, access to business systems, and intellectual property you have developed.

Address business succession intentions clearly: Do you want the business continued, sold, or wound down? If continued, who should take over? If sold, any preferences about buyers? Any specific wishes about protecting employees during transition?