Running a business is hard work. In many cases, the business owner will work tirelessly to try to grow the company. This doesn't leave much time for other things, but all owners should make time to ensure they have an estate plan established.
Business owners often plan for a lot of different situations that might come up. There is one very important plan that they might not ever think about putting into place until it is too late -- a succession plan, which can be part of an estate plan. Anyone who owns a business needs to get this done as soon as possible or else there is a chance that the company and employees will suffer if something happens to the owner.
When people count on you, making sure that you have your affairs in order is imperative. One way that you can do this is to set up your estate plan. You have to think carefully about what you are going to want everyone to get. Once you have that plan, you will be able to determine how to make your wishes happen.
Whether you have a massive estate, including a house, investment accounts and other valuable possessions or you only have the equity in your home to your name, you should take the time to create a last will. Doing so provides you with control over how your assets get allocated when you die. It also provides peace of mind, because you know the people you care for the most will receive your assets.
In our recent blog post, we discussed how some individuals use gifts to pay down an estate's value so that their loved ones aren't burdened with tax debt after you pass away. This is only one factor that matters when you are creating an estate plan. We know that you have a lot on your plate already since you are trying to run a business. We can't take all the work off your shoulders but we can do our part to try to make your estate planning process a little easier.
If your estate is going to be a considerable size when you pass away, you might want to take steps now to reduce the size of it so that your loved ones won't have to pay estate taxes. While there isn't an estate or inheritance tax in Arizona, there is an estate tax imposed by the federal government. This tax only applies to estates that are valued at $5.49 million or more.
Confronting the end of your life isn't easy. Most people don't like to think about that, but if you are willing to do this now and get your estate plan together, you can help your family members to work through your death without the undue stress that comes with dying intestate. Remembering this might be the fuel that you need to keep moving forward despite the difficulty of thinking about these matters.
Thinking about becoming incapacitated is a difficult thing to do. When you are creating an estate plan, this is one of the decisions that you will have to make. Including a living will in your estate plan is usually a good idea, but it does require that you think about the unthinkable.
Your will is an important document that your loved ones will check when you pass away. It outlines the fate of specific assets so that everyone knows your wishes. Wills are often used in conjunction with other estate planning documents, such as trusts, that make it easier to ensure that your wishes are followed.
For business owners, estate planning often means succession planning. Passing a company on to the next generation is an hugely important step in securing the family's wealth, perhaps for generations to come.