You have spent your whole life to build a business and you wouldn’t want it to vanish after your death right? Yes! Your business can be harmed without an estate plan because now you aren’t here to run it. In this case, whoever will be in charge is going to drive your business as he/she wants. Estate planning is something that can give you the power to manage the future decisions of your business. Also, it can save you from a lot of tax implications, and you get the benefit to pick the right beneficiary or person who will take over in your place. Estate Planning can be advantages to any business or company.

Estate Planning for Business

It doesn’t matter if you have a small business or the biggest company out there; estate planning can give you a piece of mind and a shield to protect your assets. Anybody who owns a business can easily benefit from estate planning. A lot of small business owners think that it is expensive for their business and they just keep on pushing it away. A study has confirmed that more than 30% of business owners don’t have an estate plan. Having a business estate plan means covering your business-related issues according to your wishes.

Benefits of Estate Planning for Business

• Options for business – Having good estate planning can make a whole lot of a difference. Have you ever considered setting up a buy-sell agreement and taking out a buy-sell insurance policy. If you have partners in your business can you imagine inheriting one of their family members as a partner especially one that knows nothing about your business. This form of planning can proof useful especially once your business partner is no longer around. This will allow an insurance policy to buy out your partners shares paying his/her family at death leaving you their shares in the business.
• Good for long-term business – You had an idea a dream and today you own a major corporation which is super profitable. Having a good estate plan means covering the basis of who can make business and financial decisions if you’re ill or mentally incapacitated. A good estate planning attorney will consider all scenarios for the future and will include a Durable Power of Attorney into your planning to insurance while you are in the right state of mind you choose who will run your affairs if one day you’re not able to. They will also potentially set up trusts to create a layer of asset protection as well a vehicle for pass through of assets to the next generation.
• Good for tax mitigation – You built a business, you got it to be profitable and now you wish to safeguard this asset for you children and grandchildren. Your business is part of your estate and at the time of death a liquidity event occurs. A good estate planning attorney will account for this and create a legal structure to minimize your tax exposure.
• Good future planning for business – Estate planning does give you the power to choose a business plan for the future. You can pick the person who will run your business, how you wish them to operate and even mandate a holiday party in your honor once a year if you wish so. You can create strategies that the company must follow and even dictate benefits for family and co-workers. This doesn’t mean that you should as none of us have a crystal ball and can see into the future. Good planning should leave room or flexibility for adjusting to current times but none the less it’s nice to know you can control some aspects of your business even when you’re no longer around.
• Business Succession – After your death people may try to take advantage of the moment for personal gain. You may find you’re your spouse and children fighting over assets and businesses. Avoid this and take control, create an estate plan dividing and giving assets as you see fit to those that matter to you most. Perhaps you have a business that you want to leave to one child and an insurance policy to the other. Perhaps you have a vacation home that you wish to be sold and profits evenly distributed to your kids. Take control come up with a plan and have an estate planning attorney put it in writing.

Estate planning is for everyone. If you have a mom and pops liquor store or a chain of restaurants both you and your loved ones can benefit from estate planning. Estate planning can be as simple as who runs my business if I’m ill to as complicated as selling of assets and distributing money after I’m gone. It can be as simple as leaving everything in equal shares to your children to as complicated as reinvestments of assets and controlled distributions based on specific life accomplishments of your children. For example wishing your estate to distribute money necessary to cover a wedding or down payment for the first house, but not to pay for a two week vacation.

In the end, we have told you the benefits and importance of estate planning for a business. We are here to guide you with all types of estate planning queries. You can simply contact us to set up a free consultation with one of our experienced lawyers who can help you with creating a custom tailored plan. Sometimes planning an estate can be a little tricky we are here to help.

The post Estate Planning for Business: Why it is Important? appeared first on Estate planning Brooklyn.

You have spent your whole life building your business; don’t you want to control who takes over your business and perhaps even how it is ran after your death? Yes! Your business can be harmed without an estate plan because now you aren’t here to run it. In this case, whoever will be in charge is going to drive your business as he/she wants. Estate planning is something that can give you the power to manage the future decisions of your business. Also, it can potential save you money when it comes to taxes, and you get the benefit to pick the right beneficiary or person who will take over in your place. Estate Planning is a great idea for all types of businesses and companies small or big.

Estate Planning for Business

It doesn’t matter if you have a small business or the biggest company out there estate planning can give you a layer of protection and a peace of mind. Anybody who owns a business can easily benefit from a good plan. It is important yet often overlooked due to worries of costs associated in creating a good estate plan. According to a study more than 30% of business owners don’t have an estate plan.

What goes into a good business estate plan?

• Revocable Trust – Creating a Revocable trust and transferring ownership of your business and its assets to the trust comes with lots of benefits. For starters, it creates an extra layer of asset protection, for example in the event of a law suit. Secondly it allows for you to name your successors and even designate there rights and rolls when it comes to the operation of such said business. With a properly drawn up estate plan you are able to take advantage tax mitigation strategies preserving more of your hard earned wealth for your heirs.
• Durable Power of Attorney – When it comes to estate planning for your business one of the best documents that you can create to work during your life time is a durable power of attorney. This document will allow and empower the person of your choosing to run and operate your business in the event that you are incapacitated and unable to do so for yourself.
• Buy Sell Agreement – Most businesses consist of two or more partners. This part of your estate planning can help insure that neither you nor your partners inherit one another’s none working family members as operating partners in your business at the time of death. Instead at the time of death their typically would be an insurance policy in place to compensate the heirs of the deceased. This part of planning is especially important and frequently over looked. Can you imagine inheriting a new partner that knows nothing about your business or how it operates yet takes home an equal salary.

Benefits of a good business estate plan

• You get to choose who inherits your business,
• You can control how your business operates even after your gone,
• Estate Planning creates an extra layer of asset protection for your business,
• You can take advantage of tax mitigation strategies for your business.

Estate planning might not be able to guarantee the future success of your business. There is always the chance that your successors even if they are handpicked will not be able to fill your shoes. However, it is always best to take control and appoint your beneficiaries and create a plan for the future operation of your business, after all you are the visionary.

In the end, we have told you the benefits and importance of estate planning for business. We are here to guide you with all types of estate planning queries. You can simply contact our office to setup a free consultation to speak to one of our experienced estate planning attorney’s. Planning your estate can be tricky and a lot of potential considerations can be overlooked without the proper knowledgeable person guiding your through the process. Don’t leave your planning for tomorrow call us today!

The post Estate Planning for Business: Why it is Important? appeared first on Estate planning Brooklyn.