If you are a business owner, you are probably overwhelmed as it is. You might feel you are too busy to think about what will happen to your business when you die. So, you push these thoughts out of your mind and resolve to consider it when you have more time. However, putting off estate planning for your business can seriously reduce your business’ worth, prevent your wishes from being carried out and even cause the business you worked so hard to develop to close it’s doors.
There are a lot of ways proper estate planning can help your business. Here are a few:
If you die without an estate plan for your business, it will pass to your heirs as determined under the laws of intestacy. Proper estate planning can help prevent your business from falling into the hands of unintended or inexperienced beneficiaries and allow it to remain in the hands of the person you have chosen.
Estate planning also allows you to keep the particulars of your business intact and ensure that your business runs the way you envisioned it for years to come. You don’t want anything to change the brand you have worked so hard to create and business principals you believe so much in.
Estate planning for your business can also minimize the taxes that may be due upon your death. Without proper planning, if you have assets in excess of $5.45 million dollars federally and $1 million dollars in Massachusetts, your estate would owe substantial estate taxes. Proper planning, such as the use of a trust, can help you reduce and possibly avoid these taxes.
Estate planning for your business also gives you peace of mind. You know that anything can happen at any time. If you have planned, your business will continue without interruption should something happen to you.
If you are a business owner, you should speak with an estate planning attorney about your business as soon as possible.