Estate Planning Gets Complicated For Business Owners
BY: Daniel M. Savage
Common estate planning goals include the following:
- Caring and providing for loved ones,
- Caring for and transferring your assets to the greatest extent possible,
- Passing on your values, beliefs, and legacy to loved ones,
- Avoiding probate and intestacy,
- Planning for a possible disability,
- Minimizing taxes of all types…during life and upon death, and
- Maintaining privacy to the extent possible.
Let’s examine four reasons why this is true.
- Who will control and manage your business in the event of your disability or death?
- How will your loss have an impact on sales and profitability?
- How will it impact loan agreements and other contractual relationships?
- Will you be able to retain key employees?
- Who will assume your role, and how will he or she be compensated?
- You can address these issues by establishing carefully designed Business Continuation and Succession Plans. Both are necessary.