Estate planning

Estate planning

 

Bernie Heine shares a post that can help business owners plan an exit strategy when leaving their business to facilitate a successful succession. 

The Importance of Estate Planning for Small Business Owners

Of course, no one likes to think about a time when they can no longer serve an active role in their business. Much like why people delay writing a will, business owners often delay estate planning. But, not planning can leave the struggle left to the company, your family members, and business partners.

If it comes to a point when you can’t lead the way and no clear instructions of what to do when it happens, your business can quickly go down and out of business.

Estate Planning for Small Business Owners in 4 Easy Steps

The process of estate planning for small business owners is long, detailed, and with many hiccups. Work with a lawyer or a specialist to draft a traditional estate plan that focuses on your needs as a small business owner. As you start this process, you’ll likely go through these four basic steps of estate planning.

Start with the basics

  1. Start with the basics.

The core of your business estate plan looks very much like a traditional estate planning document and includes:

  • A will that states your wishes about your business, property, and estate should be divided upon your death. 

  • A power of attorney appoints a legal advisor, business partner, or family member to manage your finances and undertake any business transactions in the event you’re incapacitated.

  • A healthcare directive appoints another individual, usually a family member, to make medical decisions for you if you’re incapacitated.

 

Key points include:

  • Plan for tax efficiencies
  • Draft buy-sell agreements
  • Create a succession plan

 

Read the full article, Business Owner Estate Planning – 4 Easy Steps, on the ProfessionalBusinessCoaches.com.