Between keeping employees happy, tracking your company’s finances, and ensuring daily operations run as smoothly as possible, as a business owner, you have a lot on your plate. As such, the idea of taking time from your busy day to plan your estate may seem like an impossible task. However, this is something critical for business owners. If you own a company and have not taken the time to plan for the future, it’s imperative to take this step. The following blog and a Medina, Ohio estate planning lawyer can help you through this process.
Why Is Estate Planning Necessary for Business Owners?
If you are a business owner, it’s imperative to ensure you take the necessary steps to protect the future of your business. As such, creating an estate plan can help guarantee your wishes are followed upon your passing. Not only does this allow you to detail how you want your business handled upon your passing, but it can ensure that the legacy you’ve worked hard to build is managed according to your directions, even after your passing.
What Should This Estate Plan Cover?
One of the first things you should consider including in your estate plan is a Financial Power of Attorney. This entity will act on your behalf in the event you become incapacitated or unable to make decisions regarding your finances. You can detail the authority this entity has, such as limiting it to only finances associated with your business.
Additionally, you may want to consider placing your business in a Living Trust. Generally, this is ideal for sole proprietorships, as you and your business are one and the same in the eyes of the law. This means your debts are the company’s and vice versa. As such, placing your business in a Trust can help keep your business afloat, as assets will not be used to pay off personal debts.
Finally, you’ll want to cover how you will pass down your business upon your death. In your Will, you can designate a family member, for example, to regain ownership of your company in the event of your passing. However, you can also explain that you would like to sell the company and how the profits should be split among beneficiaries.
If I’m Ready to Start Planning, What Can I Do?
As a business owner, if you’re ready to start planning your estate to protect the future of your business, it’s imperative to take the necessary steps. As such, you’ll want to contact an experienced attorney to help you through this process.
Unfortunately, estate planning can be incredibly complex. One minor error can invalidate your plan, leaving your business and Beneficiaries vulnerable. Luckily, the dedicated team at Krause Law is ready to help. We understand how challenging these times can be. As such, we will do everything possible to assist you when you’re ready to achieve peace of mind. Contact our team today to learn more.
