Owning a business and planning for its future can make estate planning more complex.
If you own a business and want to consider its future in your estate plan you need to look at passing on the holdings from one generation to the next and look to the day-to-day operation as Wills, Trusts & Estates Prof Blog recently explained in "Some Things To Keep In Mind When Estate Planning For A Business."
The advice includes:
- A will should state precisely how ownership of the business will be passed to heirs. A power of attorney should also be prepared so that someone can make decisions in case you are incapacitated.
- Any buy-sell agreements should be prepared well in advance and kept up to date. With these agreements the shares of a deceased owner can be purchased by any surviving owners with the proceeds going into the estate of the deceased owner.
- Plans should be in place for who should succeed the current owner in managing the business. Ideally, the person chosen should be made familiar enough with the business operations that he or she is able to step in quickly in the case of an emergency.
An estate planning attorney can help guide you through making sure your business not only survives but is passed on as smoothly as possible.
Reference: Wills, Trusts & Estates Prof Blog (May 13, 2016) "Some Things To Keep In Mind When Estate Planning For A Business."