As a business owner, it is essential to have an estate plan in place to protect your business, assets, and loved ones. The Probate Pro offers three reasons why business owners need an estate plan:
1. Yes, Business Owners…Accidents Happen
If you suddenly became ill or injured, does someone else have access to the bank account? What about the power to run the business? Process payroll? Write checks? Sign contracts? Hire and fire? Attend meetings? Vote on your behalf as a shareholder?
The Probate Pro Solution – Create a Limited Power of Attorney
This will allow whoever you choose to be able to do most, if not all, of the things they might need to do. Without a clear plan in place, there may be disputes, confusion, and potential disruption to the operations of your business, which could lead to financial losses and instability.
2. Yes, Business Owners Will Die, Eventually
Without planning, your business could end up in probate court. There a probate judge can make decisions regarding your business. How much do you think a judge knows about running your asphalt paving business? All of your heirs get to weigh in on how the business should be run, sold, etc. – even the ones that know nothing about it.
The Probate Pro Solution – Create a Trust
Make sure the trust owns your interest in the business. That way, you decide WHO has WHAT powers over the business when you are gone. This can safeguard your hard-earned wealth and ensure that it is preserved for the benefit of your beneficiaries and future generations
3.Business Owner’s Heirs Know Zip About Your Business
Unless it’s a family business they don’t know nearly as much about the business as you do. If you untimely exit the business due to death, illness, or disability, will they know how to value of the business? What their rights are? Will there be funds available to buy out your interest in the business?
The Probate Pro Solution – Create a Buy-Sell Agreement
This is an effective way to agree to an exit strategy in the event an owner must exit the business unexpectedly. It can spell out all of the terms, including who has priority to purchase the exiting owner’s interest, how to determine the price, when and how it shall be paid, where the money will come from (i.e. insurance). This can provide financial security for your family and help preserve the legacy of your business.
In summary, an estate plan is crucial for business owners to ensure business continuity, protect assets, and achieve tax efficiency. It provides peace of mind by allowing you to control the future of your business, safeguard your wealth, and provide for your loved ones in the most efficient manner possible. Consulting with The Probate Pro can help you create a comprehensive plan tailored to your specific needs and goals.