Estate Planning Tips for Entrepreneurs
Entrepreneurs run the risk of a lifetime of hard work when they underestimate the importance of estate planning. While a lot of entrepreneurs keep their focus on taking their business to the next level, they fail to plan for contingencies, like what will happen to that business if something bad like a terminal illness, accident or death, were to happen to them. When all these are not taken into consideration, the entrepreneur runs the risk of creating problems for self, for the business as well as the loved ones. Estate planning for entrepreneurs becomes very important since such a business would need to be run by someone if something bad happen to the entrepreneur, and the loved ones would need financial security from the enterprise. With estate planning, every entrepreneur can express their best wishes for their enterprise, and this can be done using the following estate planning tips:
Creating a will
As basic as a will is, it can be an individual’s first step in estate planning and a very important one at that, be you an entrepreneur or not. A will gives you the opportunity to express how you want the proceeds of your life-time investments to be disposed, and you would want such assets to go to the most deserving hands, such as your loved ones. Most people wait until they attain a ripe old age before drafting a will but it is way better to do it now that you’re of a sound body and mind, as a will may be challenged on the basis that the testator lacked sufficient mental capability to fully draft the will according to his true intentions. In such cases, the will may be seen to have been written under undue influence (from an interested party) and so may not reflect the testator’s true intentions. Without a valid will, your property will be disposed according to intestacy laws which may violate your personal desires, and so it is better you draft your will today with the legal assistance of an estate planning attorney. The New York estate planning attorney is highly competent in drafting a will that upholds with the New York laws.
Create durable powers of attorney
When you become critically ill, have long-term disability or develop Alzheimer’s, there is need for a competent hand to run your business. Now that you’re healthy and can make your own decision is the time to appoint someone, by creating durable powers of attorney.
Creating a living trust
You may require creating a living trust instead of a will for transferring your assets if you desire to avoid probate. When you fund assets into the trust, your terms and agreement policy will govern how these assets will be distributed before or after your death without any court supervision. Revocable living trusts are very flexible as they give you the freedom of adding or removing assets into the trust when you so desire, and you can instruct your successor trustee to handle assets left for your minors until they attain a certain age. You can also define what amounts should be used for educational purposes, health and others.
Create a succession plan
Whether you’re a sole proprietor or in partnership, you need to have a succession plan before death comes or before you retire. In your succession plan, you have to address issues like, who would take your place in the business, and who would receive the income which you’ve been entitled to. If you have someone who is interested in taking over from you, consider mentoring and training such a person ahead of time. If you plan to sell the business, then you’ll have to consider the value of your business and who has the right to buy it, and whether this best satisfies your estate goals.
This is a very important part of estate planning, as you need to have coverage for your business and your life against all forms of damages. Insurance for your business doesn’t just protect you from damages, but also gives you protection should someone get accidentally injured on your property. Life insurance ensures your surviving family is entitled to a substantial income when you die, and disability insurance entitles you to an income when you sustain a heavy injury. Protect yourself and your family from financial disasters by creating insurance policies.
Planning for tax efficiency
Estate taxes and income taxes make a significant chunk of your estate value. These taxes are backed by state and federal laws, and there are many ways in which you can reduce or avoid them with proper estate planning.
Estate Planning Attorney Near Me 10012
The estate planning attorney is highly skilled in creating succession plans, wills, trusts, durable powers of attorneys, tax planning, among others. Not every plan may work for every individual but discussing your goals with the estate attorney will give him insight to your desires and the best plan to accomplish these goals. If you live anywhere within New York, contact the estate planning attorney 10012.