So much goes into creating, launching and maintaining a business that it’s easy to overlook certain things that might be beneficial toward future success. California business owners may want to consider the following estate planning tips that have proved helpful to other entrepreneurs. Not taking time to plan one’s estate may lead to future problems, when family members are left wondering who will inherit assets.
It is easy to be so focused on running a business that one fails to take steps to protect interests in the event of incapacitation or sudden death. Without an estate plan, there is no guarantee assets will be distributed in the manner of one’s own choosing. For this and many other reasons, it is best to think ahead and craft a thorough, explicit plan that helps preserve years of hard work by enabling a business owner to specify intentions on how assets are to be transferred when the need arises.
Naming a Power of Attorney is one of the basic tools used to ensure one’s instructions will be followed should a business owner become unable to speak on his or her own behalf. Also, executing a will helps cover many bases, such as how assets are to be distributed, as well as who is to be responsible for the management and disbursement of an estate. An entrepreneur may choose a trusted family member or colleague to have access to various digital files, bank accounts and other highly personal documents.
Establishing a succession plan is another key factor in estate planning when determining how business transition will unfold when the time comes. An experienced California probate and estate administration attorney can explain available options and help develop a solid plan. He or she can also assist a business owner with any updates or changes that may need made as time goes on.
Source: business.com, “5 Estate Planning Tips for Entrepreneurs“, Fred Cohen, Nov. 8, 2016