Myth 1: I have a will, so I do not need anything else.

Fact: A will is one part of the estate planning puzzle. But it is only one part and by itself is generally insufficient to meet the comprehensive needs of a business owner. A will does not address what happens to your business if you become incapacitated (unable to handle your own affairs). A will does not avoid probate, leaving your loved ones to have to navigate the probate process after your death to transfer your business ownership interest. For everyone—but especially business owners—a comprehensive estate plan can help avoid delays, frozen assets, and legal battles. Relying on a will alone can leave your business vulnerable to disruption and potentially a significant loss of value.

Myth 2: My family will automatically take over the business if something happens to me.

Fact: Neither business ownership nor management automatically transfers to another person if you become incapacitated or pass away, unless you have taken formal steps and documented a legally binding transition process.

If you become incapacitated, your family cannot simply step in to run the business on your behalf. Without the proper estate planning tools in place, they may need to seek a court-appointed conservator, which can be time-consuming and costly, just to handle essential tasks for day-to-day management of your business, such as signing contracts, accessing business bank accounts, or approving payroll.

If you pass away without addressing the operation and transition of your business in your estate plan, the problems only multiply. Before your business interests can be transferred, there will likely have to be a probate proceeding —a public and often lengthy court process. Even worse, if you have done no estate planning, the court could determine who inherits your business interests according to state law, which may not be the person(s) you would have chosen. A relative with no interest or experience in running the business could end up in charge, or ownership could be split among multiple heirs, leading to disputes and instability.

A well-structured estate plan ensures that the right people are in control, operations continue smoothly, and your life’s work retains its value and purpose.

Myth 3: My business is small, so I do not need to worry about estate planning.

Fact: Even small businesses can face serious consequences without proper estate planning and may actually be more vulnerable than larger businesses because they often rely so heavily on the owner’s day-to-day involvement. If something happens to you and no one is legally authorized to act in your place, your business could lose access to contracts or bank accounts, miss payroll or tax deadlines, or even be forced to shut down. An estate plan ensures that someone you trust can step in immediately to make decisions, pay bills, and keep operations running, regardless of business size.