As the COVID-19 pandemic continues to wage war on the American economy, small businesses are feeling the effects. Many business owners are left wondering about the future of their companies. But with so much else going on, they often fail to proactively plan for the future. Now is a great time to do so. Even after navigating through the era of coronavirus, if small business owners fail to establish an estate plan, some day when they die, the business will simply die with them. This can result in a catastrophic loss for your family. Here are some important estate plan essentials for small business owners.
Will
A will is an extremely important legal document to have for you and your business. A will allows you to establish who you wish to receive your assets when you pass away. Wills allow you to establish a guardian for your minor children as well. If you fail to create a will prior to your passing, your business assets likely won’t go to those you want.
Trust
Most business owners have assets that exceed $166,250. It is because of this that you should establish a trust. This is because most estates of this size must pass through the probate process. Probate can be extremely costly in both time and finances in order for your assets to be distributed. That’s where a trust comes in.
By creating a trust, the assets within the trust are not subject to probate. You can include the business as an asset in the trust, which will allow it to pass to your loved ones or other named beneficiaries. Additionally, by avoiding much of the costs that are associated with the probate process, you can pass a greater share of your assets.
Business Succession Plan
It’s also extremely wise to create a business succession plan in order to plan for the business’ future after you die. There are many different options for your business succession plan. One such option is to leave your business to a family member. You can also direct the sale of the business to benefit your loved ones.
Heritage Legal, PC Helps Those in California to Plan for the Future of their Businesses
While you wish to do something thoughtful by leaving some of your assets to your loved ones, without planning ahead you can actually cause added stress and aggravation – exactly what you care to avoid. This is why it is in your best interest to consult with a knowledgeable and experienced California Estate Planning Attorney.
A qualified estate-planning attorney can listen to your wishes, provide legal advice, and assist you in the development of an estate plan that protects not only you but also your business.
At Heritage Legal, PC, we understand the importance of protecting those whom you care about most and helping to ease the burden on your family. We can help you to create a comprehensive estate plan that fills all of your needs and plans ahead for your business. To learn more or to schedule a free consultation, contact us today!