Are you the proud owner of a small business? Are you concerned about what will happen to your business in the future, such as if you’re unable to manage it due to incapacity or upon your passing?
When you create an estate plan, it’s critical that you focus a good portion of your time and energy on your small business. Failure to do so puts it at risk, and that’s not something you should be comfortable with after so many years of dedication to your organization.
Fortunately, when you take the right approach, you can obtain peace of mind while taking the steps necessary to protect your business in the future.
Here are the types of questions you need to answer:
- What do you want to happen to your small business upon your death? For example, you may want to pass it down to a child or children. Or maybe you want to sell the business and provide your loved ones with the proceeds. The structure of your business, along with any other owners, will dictate how the transfer of ownership works.
- Do you have a succession plan in place? The person taking over your role in the company should have a clear idea of how to hit the ground running. This is where a business succession plan comes into play. It outlines your responsibilities, what your role entails, and other key details to help them succeed.
- What steps can you take to prevent hard feelings? For instance, if you want to leave your business to one child – leaving out others – you should consider the best way of doing so.
By answering these questions, among others, you’ll have a better idea of what goes into estate planning as far as your small business is concerned. Contact us if you require any assistance with this process. We’ll do our part in putting your mind at ease.