Many people delay their estate planning far longer than they should. For business owners, looking forward to the world of wills and estates can seem unnecessary. When there's a lot happening in your business and personal life, it's easy to focus on the day-to-day by taking life just one step at a time. Estate planning is a field that involves looking far into the future, which is why many business owners avoid it. Most don't see it as necessary until it's too late. Unfortunately, the consequences of this shortsightedness can ruin your wishes for the future, including those for your business. Estate planning should be a top priority for business owners for the following reasons.
The Future of Your Business
As a business owner, you will know just how much work you've put in to build your business from the ground up. Chances are you've had some help from family members and friends who also value your business and see how much it means to you. Deciding who will manage your business when you are gone and allowing that person to learn from your experience is the best way to ensure that your business remains in good, competent hands.
Ensuring Your Debts Are Paid
The automatic, statutory procedures for paying debts may not work for your personal situation. As the owner of a business, and therefore also the director of a company, you could be personally liable for your business's debts in some circumstances. Estate planning with an expert in wills and estates can ensure that your debts are not paid from assets that you would rather leave to your children or other loved ones. A clear, well-written will is the key to ensuring that your wishes are respected and your family are given priority.
Estate taxes can hit small business owners hard. While the default position can be difficult to get around, talking to experts in estate planning can help to avoid excessive costs and ensure that your business stays profitable after it is passed on. Through legal tools such as trusts, wills and estates lawyers can help your family to get the most out of the assets you pass on.
Ultimately, developing a succession plan is the best method of protecting and assisting your business in the future. Talking through your wishes with an expert in wills and estates law is an effective first step towards making an estate plan for your business and assets.Share