If you have your own business, you will obviously want to protect it — and this doesn’t just apply to when you are living. You will also want to ensure that your business is in good hands and properly organized when you pass away. It is in this way that preparing your estate plan to protect your business (and your family and business partners’ interests) is vital.
To begin, having an estate plan simply gives you more options for protecting your business. if you were to pass away without an estate plan, your business could be thrown into chaos. But with an estate plan, you can insert a buy/sell agreement, which allows your beneficiaries and business partners to automatically purchase your interests should you pass away.
In a similar way, your estate plan is a customized plan — and, thus, you can establish how you want your business to be passed on to the next generation of partners and beneficiaries. Without this in place, the company could face some difficult and chaotic times where leadership isn’t in place or internal squabbles affect the company’s ability to operate.
Another crucial way that an estate plan can help a business is with taxes. Your plan can help you and your company avoid some punishing taxes that rack up when you pass away.
In general, an estate plan simply keeps your business organized and prepared in the wake of your death. Preparedness is crucial in the business world — and in estate planning.
Source: Huffington Post, “5 Things Estate Planning Can Do for You and Your Business,” KC Agu, March 31, 2016