4 Estate Planning Tips for Small Business Owners
By Solid Serenity Legal Solutions
Small business owners wear many hats. Often, they are in charge of hiring and managing staff, doing payroll, marketing, networking for their business, and many of the day-to-day business activities. It can be easy for small business owners to get caught up in their daily tasks and forget the importance of estate planning for their company.
We want to make sure you, your family, and your business are protected. Here are 4 estate planning tips for small business owners.
(1) Don’t Forget the Basics
Business interests are considered a part of an owner’s estate when he or she dies. Because of this, it is important to have the proper documents and plan in place to decide who carries on, or winds up your business if you’re gone. When meeting with an estate planning attorney, make sure your business interests are covered. You also want to be sure your loved ones get what you want them to get from your business.
Also, you need a good plan in place in case you are unable to do your daily business duties. Who could carry on your business if you’re unable, for even a short period of time? How could you make sure your business survives if you have a long or short-term disability? These questions can all be answered with the right plan.
Book online today to get your plan in place.
(2) Think About Taxes
Business owners with many assets need to think about taxes in their estate plans. You can use Federal tax laws now to help your family lessen the tax burden when you die. The current estate tax exemption is $11.7 million and you can gift up to $15,000 per year per person without paying Federal gift tax. Talk with a trusted advisor to see if taxes will be an important consideration in your estate plan.
(3) Make a Business Succession Plan
Have you thought about what will happen to your business when you retire? Many business owners dream of making their business a family business. The easiest way to make a smooth transition for your business is with a business succession plan. Your plan should be in writing and complement your estate plan.
(4) Consider Family Issues
Many families face challenges and struggles. If you have a new marriage, divorce, death of a loved one, or estrangement, it can lead to a variety of issues winding up your estate when you die. If you have a blended family or family strife, you should consider ways to manage those hard feelings in your estate plan.
You need a plan tailored to your specific needs and goals. Talk to a trusted estate planning attorney to protect your family and business.