On behalf of Kadish & Associates Law Group posted in Estate Planning For Business Owners on Friday, October 18, 2019.
Small business owners have a lot to think about when they are trying to ensure the company’s future is bright. One of the things they need to have in place is an estate plan because this gives their survivors a plan they can follow. There are several things that you have to consider when you are trying to get this plan ready.
First, you have to try to minimize the estate taxes. Businesses can have a hefty tax bill of 50% or more of the value of the business. Because taxes are usually due within nine months of the company’s owner passing away, the finances can face a big hit. Learning about the protections in Section 6166 and Section 303 of the IRS code can help you to minimize the impact that those left behind will have to handle.
Second, you need to have a will and powers of attorney designations. The will prevents your loved ones from having to guess what you want to go where. The powera of attorney give someone you choose the ability to make decisions for you about your health care, your finances, or both. This can help your business, too, because they will know that they can just focus on the business.
Third, get the succession plan for your business in order. You don’t need a long and detailed plan. Instead, you need to just outline the basic facts so that people know what to do. The goal for this is that you don’t want any unnecessary interruptions to your company.
Make sure that your trusted family members and employees know what plans you set. This can give them, and you, peace of mind of knowing that your wishes are already outlined in case something happens.