Date:
February 25, 2026
Author:
Anastasia Fainberg
/
Founder & Managing Partner
You can have a full calendar. A full payroll. A full plate… And still have one uncomfortable gap.
If something happened to you today, who has legal authority to sign? To access accounts? To approve payroll? To keep your business steady while your family is trying to breathe?
Most Colorado business owners think succession planning is an inheritance question. Who gets the company “one day.” But in real life, the first crisis is usually tomorrow morning. And it’s an authority problem.
In this article, I’ll walk you through the building blocks of business succession planning in Colorado, without the panic. Just clarity, so your business has continuity, and your family has control.
Colorado Estate Planning for Business Owners: Why This Problem Exists (And Why It Matters Here)
Colorado is full of builders, founders, family businesses, partners who’ve poured years into something real.
And because Colorado runs on small businesses, the stakes are often higher than people realize. According to the US Chamber of Commerce, small businesses make up 99.5% of all Colorado businesses and employ 47.6% of the workforce, about 1.2 million people. In 2023 alone, Denver County led the state with 20,873 business applications, which tells you how many founders are building something that can’t afford an “authority gap” if the owner is suddenly unavailable.
Here’s why this problem keeps showing up in my office:
- A will tells you who inherits. It does not automatically give someone power to run the business today.
- A trust can own an interest. It does not automatically make someone the manager with signing authority.
- Banks don’t “know what you meant.” They follow documents, titles, and internal policies.
- Partners may agree emotionally. But they still need the legal mechanism to act.
- Employees need direction fast. And “we’ll figure it out” is not a plan.
Pro Tip: If you’re searching for an estate planning attorney in Denver, ask this: “If I’m incapacitated, who can legally run payroll and access business accounts tomorrow?”
Case Study: Jordan - A Medical Emergency, A Frozen Business Week
Jordan owns a small service company in the Denver metro area. Solid team. Steady contracts. A spouse who helps with the books but isn’t listed on the bank account or the LLC paperwork.
Jordan had a will. Jordan even had a basic trust. Then Jordan had a sudden medical event and couldn’t communicate for weeks.
The first issue wasn’t “inheritance.” It was payroll.
The bank wouldn’t let Jordan’s spouse access the business account. A key vendor needed a signature to renew a contract. The employees were doing their best, but everyone was waiting on authority that didn’t exist on paper.
Emotionally, the spouse felt helpless. Practically, the business was exposed. Not because anyone did anything wrong, but because the plan didn’t include operational continuity.
Business Succession Planning in Denver: “Who Gets It” vs. “Who Can Run It”
When people hear “succession,” they picture a handoff years from now. But Colorado business succession planning really has two timelines:
Here’s a simple side-by-side that I use with clients:
This is where estate planning becomes more than documents. It becomes continuity. And for many owners, that continuity is part of broader estate planning services, because your business is not separate from your family’s stability.
The Cost of Uncertainty in Estate Planning Isn’t Just Financial
As a mom and a business owner myself, I think about the human side first. Your business is not just “an asset.” It’s your people: it’s the employee who depends on payroll, the client who needs your team to show up, your spouse who shouldn’t have to beg a bank for access while also worrying about you.
In Colorado, we value independence. We value building something with our own hands.
A good plan protects that dignity. It keeps your family out of chaos. And it keeps your team out of limbo.
The Building Blocks of Estate Planning Services That Create Authority and Continuity in Colorado
Operating Agreement (LLC)
Defines who can manage, vote, and sign. Without it, authority can be unclear right when decisions can’t wait.
Manager vs. Member Authority
If the wrong person is “the manager” on paper, the right person may still be powerless at the bank or in a contract dispute.
Durable Power of Attorney (Personal)
Lets a trusted person act for you during incapacity. Without it, your family may need court involvement to get decision-making power.
Business Power or Business Authorization Plan
Many businesses need specific internal authorizations for payroll platforms, banking, and vendor contracts, especially when the owner is the sole signer.
Buy-Sell Agreement (Partners)
Creates a clear, pre-agreed transfer path. Without it, partners may be stuck in conflict or uncertainty during grief or crisis.
Key-Person Risk Planning
If the business relies on one person’s relationships or knowledge, a plan can reduce disruption and help preserve value.
This is why I often tell business owners: your plan isn’t complete until the business documents and the personal documents speak the same language.
The Reality: Colorado Has a Plan If You Don’t
Colorado law and institutional policies fill in the gaps when your documents don’t. That doesn’t mean the outcome is “bad.” It means the outcome is not customized to your people, your partners, or your business rhythm.
Here’s the clean contrast:
And yes, sometimes this overlaps with what people call asset protection attorney work. Because business continuity is part of protecting what you’ve built.
Common Misconceptions (Myths)
Myth #1: “I have a will, so my spouse can run the business.”
A will handles inheritance after death. It doesn’t automatically give day-to-day signing authority, especially during incapacity.
Myth #2: “My partners know what I want.”
That’s not a legal mechanism. Partners still need written authority and a clear process when emotions are high and timing matters.
Myth #3: “My trust will handle it.”
A trust can be a powerful tool, and a trust attorney can help structure it well. But a trust still needs aligned business documents so the right person can manage and sign.
Myth #4: “The bank will work with my family.”
Sometimes they can. But banks follow policies and legal documents, not relationships or verbal assurances.
Myth #5: “Succession planning is only for big companies.”
Small businesses often feel disruption faster. When one person is the signer, the manager, and the decision-maker, authority gaps show up immediately.
Why This Really Matters
If your business pauses, it’s not just revenue. It’s your household stability. It’s your employees’ stability. It’s the identity you’ve built over years.
And it’s the emotional weight your family carries when they’re already dealing with the “what happened” part.
As I often tell families, it’s not about money. It’s about the people you love. When your plan is built well, it protects your work and your relationships. It keeps decision-making inside the people you chose. Not inside the confusion you didn’t see coming.
How to Start Working With an Estate Planning Attorney (Simple, Practical Steps)
- List every place your signature is required: bank accounts, payroll platforms, leases, key contracts, vendor portals.
- Pull your entity documents: operating agreement, bylaws, shareholder agreements, partnership terms.
- Identify your “tomorrow” decision-maker: if you can’t speak or sign, who can legally act?
- Match your estate plan to your business structure: that means aligning your estate attorney documents with your ownership and management reality.
- Review buy-sell basics if you have partners: agree now on valuation approach and transfer triggers, so no one is guessing later.
- Schedule a business planning audit: at Legacy Law, this is often folded into our LIFT approach (Legal, Insurance, Financial, Tax) so the plan matches real life over time.
Frequently Asked Questions About Business Succession Planning in Colorado
1) What happens in Colorado if a business owner becomes incapacitated?
It depends on the authority documents and business structure. Without clear authority, families may face delays getting access to accounts and decision-making power, and sometimes court involvement is needed.
2) Does a will allow someone to run my business immediately?
Usually, no. A will is primarily about who inherits after death, and authority often needs separate documents for incapacity and day-to-day operations.
3) Can a trust help with business succession planning?
Yes… often. But the trust must be paired with business documents that clearly name who manages and who can sign, so the plan works in real time.
4) If my spouse is involved in the business, do they automatically have authority?
Not automatically. If the spouse is not listed as an authorized signer or manager, banks and vendors may not accept their instructions without supporting legal authority.
5) What is a buy-sell agreement, in plain English?
It’s a written plan between owners that says what happens if one owner dies, becomes disabled, or exits. It can reduce conflict and provide a clear path for ownership transfer.
6) I’m a solo LLC owner, what should I focus on first?
Authority. Who can access accounts, sign contracts, and keep operations stable if you can’t act, and how that authority is documented.
7) How long does probate take in Colorado, and does it affect a business?
Probate timelines vary. But delays can impact a business when ownership and authority are unclear, especially if accounts or contracts require specific proof to act.
8) Do I need a separate plan for “incapacity” and “death”?
In most cases, yes. Incapacity planning addresses who can act while you’re alive but unable, and death planning addresses ownership transfer and longer-term control.
9) How often should a business succession plan be reviewed?
Any time there’s a major change: new partner, new entity type, new bank, major contracts, marriage/divorce, or rapid growth. And at minimum, it’s wise to review annually as part of a broader review rhythm.
Closing Reflection
You worked too hard to leave your business and your family at the mercy of confusion. A calm, coordinated plan gives your team direction, gives your family breathing room, and protects the value you’ve built in Colorado.
Don’t leave your family’s future to chance. Schedule your consultation with Legacy Law Group Colorado today and take the first step toward peace of mind.
