What is a liquidity event?

Prepare your family by organizing what you own, explaining how it works, and clarifying who will make decisions if you cannot. Introduce the people who may step in to your managers and advisors, and give them opportunities to learn before a transition. Your family does not need to handle every task personally, but they should understand their responsibilities, where to find information, and whom to ask for help.

Business owners should generally review planning periodically as businesses grow, structures change, investments expand, or family circumstances evolve.

If a founder dies unexpectedly without organized planning, the family and business team may have to reconstruct ownership, establish decision-making authority, and determine how the company should continue. Existing agreements and legal rules still apply, but they may not reflect the founder’s intentions. Even a successful business can leave survivors with difficult decisions when its structure and purpose were understood mainly by the founder.

Succession planning determines how ownership, leadership, and decision-making responsibilities will transition when an owner retires, sells, becomes incapacitated, or dies. For a business owner, it addresses who will run the company, who will own it, and how the transition will support the family and business. The plan should coordinate business agreements, estate documents, and the preparation of the people expected to step in.

Yes. A revocable trust can generally own an LLC that holds rental property. The LLC remains the titled owner of the real estate, while the trust owns the membership interest in the LLC. This can help coordinate the property with your incapacity and succession plan, but it does not turn the revocable trust into an asset-protection trust.