Business owners make a litany of important decisions on a regular basis, from hiring and promotions to investments and marketing. However, there may be one aspect of owning a business that you’ve failed to consider – what will happen after your passing. Though it’s unpleasant to think about, taking the time to plan your estate with the help of St. Louis wills & trust lawyers to ensure your business wishes are honored is critical. If you’re unsure why having a plan is critical or what to include, you’ll want to keep reading to learn more about these matters.
Why Is Estate Planning Important for Business Owners?
Unfortunately, many fail to consider how their business will continue following the death of the owner. If you do not include plans on what you would like to happen, your company may be unable to continue operating. Without an estate plan, your business will be left to the state, which can liquidate and divide your assets among your heirs. If you do have an estate plan but no clear instructions on what you would like to happen to your business, it can cause family issues, as there may be conflict regarding who will take over control and how assets are split.
In addition to your estate plan, you should consider establishing a succession plan. Though this may seem similar, it is very different from a will, as it includes terms and conditions regarding your wishes for the business and how it should continue operating. This allows you to include important business information and details to help the successor continue operations smoothly.
What Should I Include in My Will?
When creating a will, it’s important to begin planning as normal. This includes inventorying all your assets, not just those related to your business, and determining how you would like to divide them among your beneficiaries.
Next, you can begin considering what you would like to happen to your business. For example, if you are one of a handful of owners, implementing a buy-sell agreement can help ensure the business runs as normal while your family receives benefits. Typically, your share of the company will be sold to the other owner and the revenue will go to your family.
If you wish to create a succession plan to keep your business in the family, you may wish to establish a trust to hold this information, as including it in your will means it will become a public record upon your passing. This means any sensitive business details would become public, whereas they would remain confidential in a trust fund.
Though many procrastinate estate planning, working with the team at the Stobie Family Law Group can help guide you through these matters with ease. We understand that protecting your assets and beneficiaries is a priority, which is why our team can help ensure your wishes are reflected. When you need help, contact our firm today.
