We talk a lot about what happens when a business owner dies. But there's a scenario that's just as disruptive and more likely: what happens if you become incapacitated — temporarily or permanently — and can't run your business?

A serious accident. A medical emergency. A prolonged illness. Any of these can take you out of commission for weeks, months, or longer. If you haven't put the right legal framework in place, the people who love you and the employees who depend on you may have no legal authority to make decisions, access accounts, sign contracts, or keep the business running.

The documents that address this aren't complicated. A durable power of attorney designates someone to manage your financial and business affairs if you can't. A healthcare directive addresses your medical decisions. A trust, if properly structured, can provide continuity of management without a court intervening. Together, these documents give the people you trust the authority they need to keep things functioning while you recover — or while a longer-term transition is worked out.

The problem is that these documents have to be in place before you need them. A power of attorney signed after you've lost capacity is invalid. This is not something you can set up at the hospital. I've had to have very hard conversations with family members who were trying to manage a business owner's affairs without any legal authority and were essentially locked out of accounts and decisions while their loved one was incapacitated.

For business owners, I'd add one more layer: make sure the key people in your business know where these documents are, understand what they authorize, and have a point of contact — your attorney, your accountant — they can call immediately if something happens to you. A plan that exists only on paper and that nobody knows about is not a plan.

This is not a comfortable topic. But getting this right is one of the most important things you can do for the people who depend on you. BLG can help you put the right framework in place — reach out to schedule a consultation.