Business owners have a unique set of needs when considering their legal plan. A business is more than just an asset, so you cannot rely on the standard estate plan to accomplish your goals. This #WebinarWednesday replay with Attorney Bob Mannor discusses the most important reasons a business owner needs an estate plan.
Why do Business Owners Need An Estate Plan?
- Your Family Needs It – Can your business run without you? If something happens to you where you pass away, become incapacitated, or become ill for a certain period of time? Most likely, your business has been a significant source of income for your family. An estate plan will leave your family with an action plan, guidance, and legal tools to help them in their most difficult time.
- Succession Planning – If you are gone, does the person you trust have permission to access your business bank accounts? Is there inventory to sell? Can the business continue? Are there items a competitor could pay for, like a customer list, that could be included in your planning? Your estate plan should consider your succession plan, your business goals, and family goals. If you’re unable to manage your business, your family will struggle without access to your accounts and equipment. A formal, difficult process can be avoided with your estate plan.
- Direct Your Estate – A typical family with typical assets wants to avoid probate for their loved ones. A business owner’s estate administration process can be even more complicated. Planning ahead ensures a more smooth transition during a difficult time.
- Manage Debt – Most businesses have debt. What happens to that debt if you’re gone unexpectedly? In the event you die, become incapacitated, or are no longer able to run your business, would your family be liable for your business debt? Business owners need an estate plan to ensure their family and partners are protected.
- Taxes – Every business owner knows that tax laws are complicated. Just like there are special tax rules for a business while you’re alive, there could be an impact on your family or partners after you pass away.
If you’re a business owner and would like to talk with our legal team about creating or evaluating your business estate plan, we’re here to help! Contact us today.