For most business owners, their company is their life. They pour their life into ensuring they create a company that reflects their values, is successful, and will leave a lasting legacy. However, many underestimate the importance of taking time to plan their estate. If you do not have an estate plan to protect your business upon your passing, this can have unfavorable outcomes for the future of your company. The following blog explores how estate planning can help, the documents you can establish, and how a Medina County, Ohio estate planning lawyer can help.
How Can Planning My Estate Protect My Business?
Many underestimate the importance of planning their estate. Whether they believe they do not have time in their busy schedule to meet with an attorney or do not like thinking about the morbid nature of their own death, it’s not uncommon for people to push this aside. However, failing to plan your estate can have negative impacts on the outcome of your business.
If you do not have an estate plan, you have no say in what happens to the company you’ve worked hard to build. Generally, when someone passes away without an estate plan, they are considered as dying Intestate. This essentially means they don’t have a Will in place. As such, their assets will be taken by Ohio and distributed according to the state’s Intestate line of succession. They will distribute your estate, including your business, according to a predetermined method. As such, your assets may be inherited by those you did not want to receive a portion of your estate.
What Documents Should I Create?
When considering the kinds of documents you need to help shield your business, the most common choice is a Will. This document will include what you wish to happen to your assets and who will receive them. This is often the most common estate planning document. If you do not have a Will, your estate will undergo the Probate process, where the state validates the assets in your estate before distributing them. In your Will, you can also include a Succession Plan that allows you to plan out how you would like your company to be passed down.
You should also consider establishing a Financial Power of Attorney. This grants someone of your choosing the authority to make financial decisions on your behalf in the event you become incapacitated and unable to do so yourself. This can provide peace of mind that someone you trust will make competent financial decisions based on your wishes.
Should I Contact a Lawyer?
As you can see, estate planning is an incredibly complex process. Unfortunately, if you are unfamiliar with this process, you may find that you can make errors that impact the future of your company after your passing. As such, it is in your best interest to connect with an experienced attorney to discuss your options.
At Krause Law, we know how much pride you take in your business. That’s why our team is committed to exploring all your estate planning options so you can feel confident in the decisions you make. Contact us today to learn how we can assist you through these challenging times.
