As a small business owner, you’ll know that the weeks, months and even years go by in a flash. There’s always something that requires your attention and you’re often wearing a number of different hats every day.
Being so busy can mean that you don’t get the chance to take care of the “bigger picture” tasks. One said task is creating an estate plan. When you own a business it’s incredibly important to have a plan in place for what should happen to it after you die or you are no longer in a position to manage it.
Dictate who should take over from you
You may already have someone in mind that you’d like to take over the business from you when you pass away or are no longer able to operate it.
Having in place the fundamental documents such as a will and power of attorney are essential. This is where you can determine, in writing, what should happen to your property, including the business, after you die. A power of attorney can also dictate who you would like to be responsible for your financial affairs when you no longer have the capacity to manage them yourself.
Putting the business into a trust
When it comes to operating a business, there’s no time to wait for the probate process to be completed before someone can continue running it. By placing it into trust for your intended beneficiary during your lifetime, the business can bypass probate. What will happen instead is that the business will pass directly to the person who you intend to take it over. A trust can also have tax planning benefits too.