It can be difficult to consider what will happen to your business and your family if you die unexpectedly. Without proper planning, you could be leaving your family and/or key stakeholders in a huge mess. Proper planning allows you to keep your business on the right path even after an unexpected tragedy leaves you unable to continue running your business.
Estate plans focus on transferring assets upon an owner’s death. A successful estate plan achieves three important personal goals:
- Financial Security: For the decedent’s heirs.
- The Right Person: The decedent (rather than the state) chooses who receives his or her estate assets, including ownership of the business.
- Estate Tax Minimization: Reduces the government’s bite, leaving more funds for the decedent’s heirs, when estate taxes are a factor.
Estate planning can also be a tender topic for business owners because they will occasionally need to decide which family member is the most appropriate candidate to continue running the business after their death. Families have been torn apart over poorly executed estate plans.
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