Business owners often have a lot on their plates, but it is pivotal to think ahead. By setting up an estate plan, business owners have the ability to prepare for unexpected challenges, find peace of mind, protect their business and ensure that loved ones receive assets in accordance with their wishes. There are multiple considerations that business owners should keep in mind while setting up or revising an estate plan and we will go over a handful in this blog post.
Protecting your business
Once you have determined the type of estate plan that will suit your unique circumstances best, it is important to look into taxes. Unfortunately, estate taxes often hit businesses very hard, prompting many to shut down altogether after the owner passes away. However, business owners can take steps to minimize the likelihood of such an event by looking into tax breaks and holding business shares in a trust. Also, succession plans are essential and these plans help make sure that business operations will continue uninterrupted following one’s death. It is often important to include loved ones in these matters and have discussions about how to handle various facets of one’s estate (especially a business).
Sometimes, people decide to set up charitable trusts in order to donate their business assets to an organization after they pass away. There are a lot of different options on the table and it is crucial for business owners to organize all critical records, such as financial statements, business plans, insurance paperwork and so on. To read about other topics related to creating or making modifications to an estate plan, browse through other parts of our website.