A person who owns and handles the daily management of a business needs to ensure that they have their estate plan in place. This has to address the need to support their family members, as well as ensuring the company can move forward.
One of the primary things you need to do is get the succession plan together. This outlines who is going to take control over the company when you can’t. Now is the time when you can teach them what they need to know about running the business. Make sure your management team knows the plan, so they’re ready when the time comes.
Another thing to do is plan for the tax liabilities that your estate will face. If your estate is over $11.9 million for a married couple or $5.45 million for an individual, you’ll be liable for the federal estate tax. You may have options to reduce the value of the estate, so it won’t be subjected to that tax.
You also have to plan for the need for funds to keep the business afloat. During the time of transition after you pass away, the revenue might dip a bit. Knowing that you have a plan in place for liquidity to cover the bills during that time can give your loved ones and the company security.
As is the case with all aspects of estate planning, you need to work with someone who’s familiar with cases like yours. This enables you to draw from their knowledge while you work through figuring what’s best for your situation.