If you have business partners, one of the most important details is to establish an estate plan for your shared business. No one can predict the future, so make sure that the business you’re investing so much time and money in has clear terms. You need to plan your estate to ensure that, in the event of your death, all of your affairs are in order and properly carried out.
Most business owners decide to take this extra step, but the estate planning process requires the help of a skilled lawyer to protect your company from potential financial losses. Things become more complex when, for example, you have children you want to include in your estate plan. So, here are three top reasons to plan your estate when starting a business.
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Buy-Sell Agreements
If you aren’t the only owner of the business, a buy-sell agreement is a precaution worth learning more about. In the event that something were to happen to one of the partners, a buy-share agreement allows the remaining owners to purchase the business shares. Or, they can pass to the deceased or disabled partner’s heir. Having a plan in place can make unforeseen transitions easier to manage for everyone involved, and also help to prevent conflict.
Leave a Legacy
When you have an estate plan, you can rest assured that your business is taken care of by qualified people who have the best interests of your company at heart. It’s important to have a succession plan if you’re the sole owner. In this document you can specify things like your preferences for how the business is operated or sold.
A Living Trust
You may wish to plan your estate to include a living trust. A living trust is separate from your will and can help to keep your business assets out of the court system. This is because the assets you place in a living will aren’t subject to probate. There are a number of advantages to this, from privacy to cutting down on legal fees and estate taxes.
Plan Your Estate
The estate planning process isn’t something that can be completed overnight. You’ll need the help of an experienced lawyer to guide you through the process. When you’re ready to learn more about planning your estate, contact Lewman Law by calling (925) 447-1250. In the meantime, feel free to browse our testimonials by clicking here.
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