While many individuals only need to worry about personal assets, some also need to make plans for the future of their business upon their death. In fact, one of the most essential components of owning is a business is ensuring that it will remain viable should you be unable to. As businesses tend to be owned individually, they usually qualify as an asset that must go through probate. Estate planning can take into account various aspects of business ownership and help ensure that your wishes for your business are carried out as you see fit. You can nominate a person or persons to take ownership of your business, create a financial plan for your business, or do numerous other things that will ensure your hard work continues to thrive the way you would like it to. There are several reasons why it is important for business owners to make provisions for their business as part of their estate plan.
Failing to create a comprehensive estate plan for a business that you own puts your hard work at risk. A business could potentially end up in probate with various people vying for ownership, which could spell trouble for the business itself as well as its profits. You also risk your business traveling down the line of succession in New York to an individual that you may not want in charge.
The sooner you create a comprehensive estate plan for or including your business, the more options you will have at your disposal as to how you wish your business assets to be distributed upon your death. You may want to dissolve your business after death so that assets can provide financial comfort for loved ones, or you may wish to nominate a specific heir to take control of your business and its assets. You might want to stipulate that your business continues to operate if it can viably do so, or you may want to include other instructions. The earlier you begin to plan, the more options are at your disposal.
Without a comprehensive estate plan for or including your business, the government may take a significant portion of the business’s assets. This can impact a business’s financial stability as well as the financial stability of loved ones you would like to benefit from your business assets. By planning ahead, you can help greatly reduce – and sometimes even eliminate – many of the tax consequences that might otherwise occur.
Continued Control Over Your Assets
With a comprehensive estate plan for or including your business, you can ensure that your wishes for your business assets are carried out. Business owners work hard to build their business, and it is important that they have a say in how business assets are distributed after their death. This can help ensure that the hard work you have put into owning and operating a business pays off in the way you would like it to. While it is not always a pleasant process to consider the future of your business after your death, it is an important part of ensuring the longevity of your assets. An experienced estate planning attorney can help you understand what options might be available to you.