It’s no secret that as a business owner, you have a considerable amount of decisions to make on a daily basis to ensure your operations run as smoothly as possible. As such, taking the time to plan your estate may seem like an impossible feat. However, estate planning is one of the most essential considerations business owners must make regarding the future of their company. If you own a business and have not established an estate plan yet, a Pasco County, FL estate planning lawyer can help you protect your company. Keep reading to learn why you should not wait and what to include in your plan.
Why Is Estate Planning Important for Business Owners?
As a business owner, you have put a significant amount of work into your company, making it critical to ensure your wishes for its future are honored upon your passing. After all, you’ve worked hard to build the credibility and legacy of your company, so you should take additional steps to ensure this is protected according to your terms and conditions upon your death.
What Should I Include in My Plan?
One of the most important things business owners should consider including in an estate plan is a durable financial power of attorney. This is an individual that you will appoint who has the authority to make financial decisions for your company if you become incapacitated or unable to do so yourself. This person, known as an agent, can act on your behalf and sign documents or sell assets, among other responsibilities. It’s important to note that you can limit their authority, so they are only able to make decisions in regard to your business as opposed to unfettered access to your personal finances.
Next, you’ll want to create a plan to pass down ownership of your business. Many wish to keep the company in the family, passing it down to a child or grandchild. As such, creating a succession plan can help make the transition of ownership seamless. This helps the new owner take control of the business by providing access to confidential information and the primary goals for the development and continued success of your company.
Finally, if you run a sole proprietorship, you may want to consider establishing a living trust. In the eyes of the law, you and your business are the same entity. As such, any debts you incur will reflect on the business and vice versa. However, placing business assets in a living trust technically transfers ownership to the trust fund, allowing you to better protect your company.
Why Is Contacting an Attorney Imperative?
As you can see, there are many considerations business owners must make in regard to estate planning for the future of their company. Unfortunately, trying to navigate this on your own can have many implications, putting the success of your company at risk after your passing. However, working with an attorney ensures you can feel confident in your choices, as you will fully understand the benefits and drawbacks of each option.
At the Law Offices of Matthew J. Jowanna, P.A., we understand how overwhelming the estate planning process can be for business owners. That’s why our team is proud to serve and assist you. Contact us today to learn how we can help you obtain peace of mind.