As a business owner, your assets are likely more extensive than someone who does not own a business. Therefore, it is necessary to prepare for the future of your business by having your estate plan created with your business in mind.
It is crucial to make plans for who will inherit your business, knowing that a business succession plan is not as simple as passing the company to next of kin without any paperwork or formalities. However, your estate plan can make the transition simple when done correctly.
Estate Planning: 5 Tips for Business Owners
Protect your business and your other assets through estate planning. Here you can name your successor and the agreements for the future. Consider these tips:
- Decide What You Want for Your Business: What do you ultimately want for your business? Would you like it sold off after your death? Would you like someone you love to take it over and continue your legacy? Once you know what you want, you can name the proper successor and detail your estate plans.
- Speak with Everyone Involved in the Estate Plan: Have candid conversations with potential successors for your business and what they would do with it. Are they as passionate about your business as you are? Who is willing to invest time and energy into continuing your business successfully?
- Procure Life Insurance and Disability Insurance: Be sure that you have all your insurance policies in place if something were to go wrong. Life and disability insurance can save you financially when you’re unable to work.
- Keep Your Financials Up-to-Date and Straightforward: Spell out your finances for those who are not familiar so that a court can easily interpret and implement your estate plan. A trusted lawyer can also back up what you outlined in your plan.
- Implement a Clear Tax Strategy: Use your estate plan, including trusts, to pass down assets while paying minimal taxes. Estate plans are a great way to implement a tax strategy for your business’s future.
When you have an estate plan in place, the status of your business will not be left uncertain after your death. You can rest easy knowing you are prepared should the unexpected occur.
Do not put off estate planning any longer. When you partner with Shoup Legal, you can count on an experienced team to help you plan today for peace of mind tomorrow. Contact us at (951) 445-4114 or email us at [email protected].