Estate planning for business owners is essential. Most business owners work hard to provide a legacy for themselves and their families. This legacy and the business can be at risk without adequate estate planning. Unfortunately, many business owners avoid the topic of estate planning and have trouble getting started.
At Beller Law, PL, we are here to help. Our experienced Florida estate attorneys know how to get you started on the path toward developing an effective estate plan that will protect your business and your family. Our firm has over 25 years of experience helping people like you create individualized estate plans that account for the most important aspects of your life. The first step to protecting your business’s future is scheduling a consultation.
Estate Planning for Business Owners
Business owners have special issues to consider when estate planning, and a good attorney will help you address all important factors. Businesses dramatically benefit when owners implement a well-thought-out succession plan for after they die or step down from running the company. Owners also need to consider how their business will run if they become unexpectedly incapacitated. Finally, keeping estate plans current is even more critical for business owners than non-owners.
Business Estate Planning
Business owners have slightly different considerations when developing an effective estate plan. While setting heirs up for success, protecting assets, and minimizing taxes are vital steps for everyone—business owners must understand how each step can be accomplished while maintaining a thriving business. Sometimes what seems best for heirs might not be as good for the company, and owners must consider these competing factors. Several estate planning instruments can help business owners accomplish all of their goals.
Wills
Business owners can not afford to have Florida courts distribute their estates according to intestate succession laws. These laws might divide your business between heirs in inefficient and unacceptable ways. A poor division of ownership can lead to conflict and ultimately doom a company to failure. You can avoid Florida’s intestate succession laws by writing a will.
In your will, you can dictate who should manage the business and how the business’s profits and assets should be divided among heirs. Doing so will help you protect both personal and business assets.
Trusts
While a will gives you broad authority to make general decisions about your company’s future, a trust can provide you with much more detailed control over the future operation of your business. With a trust, you can appoint someone to manage the company on behalf of beneficiaries and facilitate the continuing operations of the business. Trusts can also help your business avoid probate, which can be a significant distraction. Further, a trust might help you protect your business from personal creditors.
Life Insurance
No matter how well you plan, changes in ownership present many risks for businesses. Life insurance is an excellent way for business owners to provide for heirs beyond handing down the company. If the worst comes to pass and the business fails, a life insurance plan will help your family through the difficult time.
Buy-Sell Agreements
Sometimes there are better options than passing a business down. A buy-sell agreement is a valuable tool for these situations. Buy-sell agreements dictate what happens to a person’s share of a company when specified events happen. With a buy-sell agreement, you can arrange to sell your portion of a business when you pass. And buy-sell agreements can be particularly useful in partnerships.
Business Succession Planning
Whether you plan to pass your business to heirs or not, a business succession plan is critical if you want your business to thrive under new ownership. There are many benefits to developing a succession plan, and an experienced attorney can help you create one.
A strong succession plan will help you mitigate the risks involved with ownership changes. Creating one will also help you identify potential future leaders for your business internally and externally. A clear succession plan that identifies successors for leaders at all levels of your company can motivate key employees and help you retain them. Further, planning for the future success of your business will help you identify potential growth opportunities and understand who might be available to fill new roles as needed.
The sooner your business has an effective succession plan, the better. An experienced attorney from Beller Law, PL., can help you implement such a plan.
Planning Contingencies for Incapacity
A sudden incapacitating event can throw your business into chaos. Creating a plan for who can make decisions in your absence is essential. A durable power of attorney is a legal document that allows you to appoint someone to make decisions if you become unable to do so. Creating such a plan will help your business run smoothly and increase your chances of returning to a thriving business once you heal.
An experienced estate attorney can help you craft a durable power of attorney specifically tailored to your needs.
Keeping Your Plans Up To Date
Once you have an effective estate and succession plan, you must continually update them as circumstances change. Marriage or divorce, new children or grandchildren, and other significant changes usually require updates to your estate plan. Business succession plans must change as employees join and leave the company and as the business environment shifts. Many experts consider updating these plans annually to be the best practice.
If you are a business owner who needs to create or update your estate plan, Beller Law, PL, can help. Our firm takes a deep interest in every client’s estate planning needs. We craft comprehensive and individualized estate plans to support business owners in accomplishing all their estate planning goals. Contact us today to schedule a consultation.