How Small Business Owners Can Provide Security for Their Families
Meet Jim. Jim has a wife, two daughters, and a small business. He wakes up every weekday at 6:00 a.m., arrives at work before his employees, and often stays late to strategize and plan for a potential buyout. Jim wants to provide financial and emotional security for his family, so he works hard and makes sacrifices daily. He is so busy running his business and being a super-dad that he has little time to do everything else that he would like to do. Jim hasn’t golfed in three years. Unfortunately, he also has no estate plan.
The above scenario is not only typical, but also ironic. Jim is so busy running his business to help his family become financially secure that he has no estate plan to help his family stay financially secure. He is sacrificing his future for his present. In the sad event of Jim’s death or incapacitation, not having an estate plan could cost his family and business tens of thousands of dollars in taxes and other fees, as well as months or years of stress during an already emotional and difficult time.
How Can I Benefit from an Estate Plan?
1. Protect Your Business’s Future
With the right estate plan, your business can stay strong in your absence. Businesses that lose their owners to death or incapacitation are often sold, invariably at a loss, to pay for taxes and debts when there is no estate plan in place. Protect your business by beginning an estate plan now.
2. Maintain Control of Your Assets
When someone passes away without an estate plan in place, their assets are distributed by the court and an indifferent judge will decide what happens to the estate left behind. Helpful precautions, such as a will, ensure that you decide how your assets are handled—not someone unfamiliar with your unique family and business situation.
3. Minimize Fees and Taxes
Setting up a trust is a great way to ensure that you keep the assets you have worked hard for. Trusts are varied and flexible, offering a toolkit to address every need, whether it’s a revocable trust to avoid probate and manage funds for minor children or an asset protection trust to keep your financial holdings safe.
How Do I Start an Estate Plan?
To start, make an inventory of your home and business. An attorney experienced in estate law can provide valuable expertise, ensuring a thorough inventory and a customized plan for your unique business and family situation.
You make sacrifices for your family and for your business every day. Don’t sacrifice their financial and emotional security by postponing an estate plan.
Disclaimer: This website, blog post and all related material is for informational purpose and is NOT legal advice; hence it should not be acted upon without seeking advice from a lawyer licensed in your state or jurisdiction. This website, blog post and all related material does not create an attorney-client relationship. Sumsion Business Law cannot ensure the accuracy of any third-party links.