A Lesson from landman 🤠
Who has watches Landman on Paramount? 🙋♂️
If not, you're missing out.
Briefly bringing you up to speed. There is a character named Monty Miller. He is the larger than life owner of M Tex Oil. The series revolves around his company and his employees.
Spoiler: He dies unexpectedly in the Season 1 finale causing the people around him have to answer some hard questions about the company.
So, why am I writing about this?
Well, in the most recent episode, M Tex Oil's General Counsel explains that because the business didn't include a succession plan, it will likely have to be probated so ownership can be sorted out.
This is a problem in the show because it will reveal the company is insolvent (because probate is public).
Monty's Real Problem
I way too often see early signs of this in my estate planning work with business owners.
In Monty's case, the company itself does not go through probate. The corporation is its own legal “person.” What Monty actually owned was stock in his company.
Monty’s problem was this: He died still owning his shares in his own name, outside of a trust or clear succession plan.
Because of that:
His shares become part of his probate estate
A court process is needed before someone can clearly step into his shoes as owner
His family and business partners are left in limbo about who has the right to vote those shares and make big decisions
What Legal Purgatory Looks Like in Real Life
When a business owner dies without a plan for their ownership interest, it may lead to:
Delays in closing deals or selling the business
Uncertainty for employees and partners about who is in charge
Conflict between the surviving spouse, children, or co-owners
Or who even has the ability to access the business bank account
In best case, the business may still be operating day to day, but the ownership picture is cloudy.
How This Could Have Been Avoided
The good news is that a Monty style mess is usually preventable. Here are two of the main tools we use.
🖊️ Own the business through a trust
🖊️ Coordinate company documents with the estate plan. The bylaws, shareholder agreement or operating agreement should line out each scenario, proactively.
🦉 At HootOwl, we help business owners align their estate plan with their business documents so that a death or disability does not leave their family or company stuck in limbo.
If you would like to talk through your situation, reply to this email or contact our office to schedule a time.
Be wise and protect your nest, including the business you have built