While you may have spent time, energy and money creating a comprehensive estate plan for your own personal assets, have you done the same for your family business? Undoubtedly, your will and other estate planning documents will explicitly detail what should happen to all of your personal effects, property, funds and debts, it may not cover your business unless specifically designed to do so.
Imagine all of your hard work and familial legacy going down the drain after your passing. In order to prevent this and to ensure that your business stays in the family, it is imperative that you use the same mechanisms to protect your family-owned business that you use for your own personal estate. Failing to do so can result in high taxes, fees and chaos – all of which will affect your family at this already difficult time.
The importance of estate planning
Here are just a few key points – read ahead to learn more about the importance of estate planning for your family business. Remember, hiring a skilled lawyer who is experienced in estate planning is key to your business’s future success – don’t hesitate to call or email us to start making plans.
- Mitigate risk and confusion – Professionally assisted estate planning can help to mitigate the risks and confusion that can often ensue following a business owner’s death. Estate planning will help to determine how all of the firm’s money and physical assets will be divided, helping to ensure that the correct people (your family or other loved ones) inherit your business and in what way.
- Minimize taxes – Countless business owners mistakenly believe that they can leave their business to their children without any problems, but this is an error that can cost your estate a lot of money and hassle. Failing to create an estate plan could mean that your business will be subject to federal gift tax, something that will take a chunk out of your bottom line.
- A smooth ownership transfer – If you fail to create an estate plan, your family and business could be plunged into chaos in the event of your unexpected death. A good estate plan not only leaves information about finances, it also leaves clear information about daily operations, plans for dealing with shareholders outside the family, and information about key employees and management.
- Peace of mind – Once you have a comprehensive plan in place for your business in the event of your passing you can relax in the knowledge that your business – and your family – will be well taken care of after your passing.
Why spend the years before your retirement worrying about what will happen to your business after you are gone? Work with a Lake Tahoe area lawyer to start planning your estate today.