You built your Houston business with long nights and bold choices. When you die, you want that momentum to continue without court bottlenecks or family disputes. A clear succession plan, aligned with Texas probate rules, keeps customers served, payroll met, and value preserved. With a few targeted steps, you can hand the company to the next leader without missing a beat.
Map Who Does What on Day One
You should identify who runs operations the morning after you pass. Name an acting CEO or general manager in writing, and give them authority to sign checks, approve vendor orders, and manage staff. Create a binder (digital and hard copy) that lists bank contacts, insurance policies, recurring payables, and key passwords stored through a secure manager. Clarity in those first seventy-two hours prevents panic and protects your reputation with lenders and clients.
Choose a Transfer Mechanism That Fits Your Structure
Your plan depends on how you own the company. If you hold shares in a corporation or membership units in an LLC, a buy-sell agreement can move your interest to co-owners at a pre-set price. For sole proprietors, a transfer-on-death designation on business accounts and a will that names a successor can bridge the gap. Many owners place interests into a revocable living trust so a successor trustee can act immediately without waiting for probate letters. Pick the method that matches your team, your tax goals, and your time horizon.
Keep the Lights On During Probate
Texas probate can be efficient, but vendors still want proof that someone has authority. Make it easy by keeping your company records current—operating agreement, bylaws, meeting minutes, and a recent consent naming interim officers. Your executor or trustee should have a short script for banks and a folder with your EIN letter, certificate of formation, and assumed-name filings. The faster you supply documents, the faster receivables land in the right account.
Clean Up Your Cap Table and Contracts
You cannot transfer what you cannot describe. Reconcile your cap table, option grants, phantom equity, and SAFE notes. Confirm who holds voting versus non-voting interests. Review leases, supplier contracts, and client agreements for death-or-control-change clauses that might trigger consent requirements. Update your registered agent and mailing addresses so official notices do not vanish into a PO Box you stopped checking years ago.
Protect Value With Insurance and Funding
You should pair your transfer plan with dollars. Key-person life insurance replaces lost revenue while your team regroups. Cross-purchase or entity-purchase insurance funds the buy-sell so your family receives cash instead of illiquid paper. Disability coverage fills the gap if you cannot work but do not pass away. The right mix keeps pressure off the company and off your heirs.
Avoid Common Houston Pitfalls
Business licenses, sales-tax permits, and city registrations require updates after an owner dies. Put renewal dates on a calendar and delegate those tasks to someone detail-oriented. Do not leave intellectual property unassigned; transfer trademarks, domain names, and code repositories along with the business. Finally, if your spouse works in the company, address community-property issues so voting control and income rights align with your goals.
Make It Official in Your Estate Plan
Your will or trust should name who receives your business interest and who manages it during administration. Add powers that authorize the fiduciary to run, refinance, or sell the company without extra court hearings. Back that up with a durable power of attorney so a trusted agent can act if you are alive but incapacitated. Those documents turn a plan on paper into authority that banks and buyers accept.
Keep your Houston company thriving for the people who rely on it. To design a transfer plan that works in real life, call McCulloch & Miller, PLLC at (713) 903-7879 and schedule a strategy session that fits your business and your family.