As a small business owner, you likely know that you need to have a will and a succession plan as part of your estate plan. What you might not realize is that you also need to have suitable insurance policies in place so that those left behind have a source of income.
If you're a business owner who is doing their estate planning, consider that your business may be the best and most valuable asset you leave to them. With that in mind, it is very clear why this process requires such careful planning.
You started your business from nothing. You have been grooming your children to get them ready to take it over when you decide to retire. Maybe you have one specific heir that you think is the right pick for the job. Now, you're just wondering how old they should be when you give it to them.
One of the primary things that some people want to establish with their estate plan is protection of the assets from creditors. Establishing an irrevocable trust is one way that you can do this. You should carefully consider the terms of the trust because once you establish it, you can't change it if it is an irrevocable trust.
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.
Living wills are a crucial part of the estate plan. If you have a small business, you might find that having this document in place is more critical than it is for a person who doesn't own a company. One thing that you have to remember is that your employees will still count on your company even when you are incapacitated. The same thing is true for customers who utilize your company.
When company owners think about a succession plan for the business, they often focus on who is going to take their place when they die. This is certainly important because the business can't run without someone in charge. It is imperative that they have someone trained to do their duties so that the people who count on the company can continue to operate.
This blog has covered the need for business owners to have an estate plan in place. Many people might not realize that the will has to meet specific requirements if it is going to be considered valid under Arizona law. There are many factors that business owners need to think about since the will can impact the company and their family members.
Around 30% of business owners haven't taken the time to create an estate plan. These individuals might not realize that they are putting the company, their employees and their family members at risk by overlooking an estate plan. The reasons for not creating a plan vary greatly. They may feel they have plenty of time, or they might think that nothing will happen to them. Some think that it will take too long to get the plan established. None of these are good reasons. The bottom line is that every business owner should have an estate plan in place.
Your estate plan has to be based on the circumstances of your life. This means that you might end up having to change the plan as time marches on and your situation changes. One thing that can add complexity to the situation is when you have a business that is depending on you. Thinking about the business and your family becomes the priority. While you are doing this, think about your family situation.