By Jeana L. Goosmann, CEO & Practicing Attorney
Most business owners have a plan for growth. Far fewer have a plan for interruption.
Not just death, but incapacity. An accident. A health event. Something that takes you out of the business temporarily or permanently.
And when that happens, the question becomes immediate:
Who’s in charge?
The Gap We See Most Often in Business Planning
At Goosmann Law Firm, we regularly work with business owners who have strong, successful companies but no clear legal structure for what happens if they can’t run it.
This year, we’re seeing increased urgency around incapacity planning, especially for owners whose businesses depend heavily on them day-to-day.
The common assumption is: “My spouse will handle it,” or “My team will figure it out.”
Legally, that’s often not the case.
Without proper planning, the individuals most familiar with the business may not have the ability to act on its behalf.
A Common Scenario
Consider a situation where a business owner is unexpectedly hospitalized and unable to make decisions.
The business continues to operate, but key functions require authorization:
- Contracts need to be signed
- Payroll needs approval
- Banking access becomes an issue
- Key decisions stall
In many cases, a spouse or family member is willing to step in but does not have legal authority to do so. A leadership team may be capable of maintaining operations but lacks documented control or decision-making authority.
What follows is delay, confusion, and in some cases, court involvement.
Where Business Operations Break Down
When there is no clear plan in place, several issues commonly arise.
No clear decision-maker
Without the proper documents, no one has authority to act on behalf of the owner.
Lack of operational continuity
Even strong teams hesitate without defined leadership and authority.
Banking and ownership issues
Accounts, ownership interests, and voting rights may be frozen or unclear.
Family vs. business tension
Family members and business partners may have different expectations, with no roadmap to resolve them.
These issues can happen quickly and may affect both day-to-day operations and long-term business value.
What a Strong Plan Looks Like
Planning for incapacity requires more than a will. A comprehensive approach should address both legal authority and operational continuity.
Durable Powers of Attorney
Authorize a trusted person to act on your behalf for business and financial matters.
Business succession planning
Define who steps in operationally. and under what circumstances.
Ownership structure alignment
Ensure your ownership interests align with your estate plan.
Clear communication
Your team and key stakeholders should understand the plan before it’s needed.
Why Planning for Incapacity Matters
Many businesses are highly dependent on their owners, particularly in closely held or founder-led organizations. Without a plan in place, even a temporary disruption can have meaningful consequences.
Without a plan:
- Decisions stall
- Revenue is impacted
- Value erodes quickly
With a plan:
- Operations continue
- Leadership is clear
- Risk is controlled
Planning Ahead for Business Continuity
Planning for incapacity is not limited to estate planning. It is a business continuity issue that should be addressed alongside operational and strategic planning. At Goosmann Law Firm, we work with business owners to create practical, business-focused estate plans that go beyond documents.
Our approach:
- Align your estate plan with your business structure
- Identify gaps that create operational risk
- Build a clear, executable plan for incapacity and transition
The bottom line: if your business depends on you, your plan needs to account for the day you’re not there.
Contact Goosmann Law Firm today to proactively discuss business continuity and succession.
Disclaimer: This document is for general education and marketing purposes. It is not legal or tax advice. Consult qualified advisors before acting.