There are various federal contracts owned by particular classifications of individuals including veterans. The unexpected death of a service disabled veteran business owner, however, can leave an individual with numerous questions about how ownership of the contract will transfer. This entry will note some elements about these contracts when the certified owner dies and another individual, which could be a spouse or a child, becomes the new owner of the contract. It is also important to remember that in many of these types of contracts, the assistance of an attorney who specializes in government contracts and bids can be especially useful.
Service Disabled Veteran Owned Small Businesses
In the case of these types of contracts, if the service disabled veteran dies, the company is still viewed as a service disabled veteran owned small business by the government. A surviving spouse is any individual who identified by the Veterans Benefit Administration and listed in their database as such. In these types of contracts, the veteran must have had a one hundred percent service-connected disability or died as a direct result of a service-connected disability.
The Veteran Administration’s Veteran’s First Program
The Department of Veteran’s Affairs offers a specialized program where veteran owned small businesses must be verified in advance of bidding on veteran administration contract. The Veteran Administration has complex rules to determine whether the new owner of this type of contract is the surviving spouse of a service disabled veteran or not considered as such. If a veteran was one hundred percent disabled or died as a result of a service-connected disability, the surviving spouse is viewed as the new owner of contract and maintain this status until one of several events occur. These events include remarriage of the spouse, the sale of the business or contract by the spouse, the date that the company no longer qualifies as small, or ten years after the death of the original owner of the business. A surviving spouse is much more limited in regards to options for the business if the deceased veteran was not one hundred percent disabled. In these cases, a surviving spouse is only allowed to honor existing contracts to the end of their term.
Women Owned Small Businesses
There is currently a lack of regulations regarding how ownership changes when the death of the owner of a woman owned small business occurs. As a result, it is uncertain how ownership would transfer upon death in a woman owned small business.
Obtain the Assistance of a Skilled Colorado Attorney
In preparing for the passing of a company owner, it is an incredibly wise idea for government contracts to maintain a written succession plan that specifies how transfer of ownership of the contract will occur in the event of death. With its founder, a member of the United States military, the practice of Whitcomb, Selinsky, & McAuliffe, PC is focused on providing veterans with strong legal representation. If you are a veteran who needs legal assistance, contact our skilled lawyers today or call us at (866) 476-4558.Tags: Estate Planning