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.
Have you thought about what is going to happen to your belongings when you pass away? If you are an adult and the answer to that is no, you need to take the time to think about this right away. Dying without a will has some very serious consequences. Consider these reasons to ensure that you have your will in place as soon as possible:
The one thing that is the same in every estate plan is that the person who created it put a lot of thought into who is going to get what. When you are the owner of a business, you really need to think hard about how you are going to set things up. While most people only have to think about how to benefit their family when they pass away, a business owner has to consider the future of the business. This can be a big challenge, but it is possible.
You have worked hard to grow your business, but you aren't going to be able to take it with you when you pass away. Instead, you need to ensure that you are making plans today that can set up the business in a way that will be able to help support your family if something does happen to you. As a responsible business owner and loving family member, you are probably thinking that you need to get something done right away to encourage everything to transfer over smoothly when you do pass away.
When your family members count on your business for support, there isn't any reason why they should have to worry about what is going to happen to them when you pass away. All business owners should take the time to get an estate plan together that sets out a plan for what is going to happen when they pass away.