If you own a business, it’s important to plan for what will happen to your business after you pass away. As a business owner, most of your assets–and your family’s financial security—is tied up in your business. Establishing a successful estate plan depends on the business being transitioned to someone in the family or sold to someone else. Either result can take years to prepare. Careful planning with a legal representative familiar with estate planning, like the team at LexLaunch.com, will protect your assets and reduce liability when your business is passed to another family member or sold. And, since most of us do not know precisely when our time on earth will end, it’s never too early to implement a clear estate plan.
Without an estate plan, your family might be left with lots of problems obtaining the assets of your business upon your death. Your business might have to be shut down if no one knows how to run it, where to find important contacts and where your accounts are located. Without a designated plan, all assets of the business will need to go through court systems to determine ownership. This takes a great deal of time—normally at least a year–and can be very expensive. This process is also public, so all your assets will be revealed to whomever is interested in the meantime.
A fundamental step in estate planning is building a revocable trust. Your assets will then fund the trust to keep them out of the lengthy and exhausting probate process. To manage this funding, business owners can work with estate planning attorneys to create a “revocable living trust agreement.” Proper creation and funding of this trust can help keep your assets out of the probate process by placing the administration of your estate in the hands of someone designated to manage the assets, the trustee. While you are alive, you serve as the trustee. The type of business you own and interests that you have will determine the structure of your trust, which is why it is important to work with an attorney who has experience in this process.
Proper estate planning can prevent your assets from becoming entangled in the probate system upon your death. This is important for the security of your family, and a step that all business owners should not overlook. It’s important to make an appointment with the attorneys at LexLaunch.com to start the estate planning process. A well-implemented estate plan is an important part of taking the risk out of your family’s financial future and, most importantly, will provide stability and comfort to those you love most after you are gone.
At LexLaunch.com, we are dedicated to providing small businesses with the legal foundation they need to create a strong and successful future, for the life of their business. Have you spoken to a legal representative to decrease risks and protect your business? If not, call the professionals at LexLaunch.com today at (816) 434-6610 or click here for more information.