Why Should You Have An Estate Plan?
Most people do not think about estate planning until something bad happens to a loved one or a friend. People create an estate plan for multiple reasons such as:
- Avoiding probate
- Providing for their children
- Planning for death taxes
- Charitable gifts
- Prepare for any incapacity
- And more…
It is never too early or late to start your estate planning. But if you own a business or you are a shareholder of a business, having an estate plan is highly recommended. The peace of mind of having a plan in place allows you to live life to the fullest and not worry about what will happen to your loved ones if and when you are gone.
Can I Prepare My Own Estate Plan
While you can prepare your own estate planning documents, many of which you can find templates online, it is extremely recommended to seek counsel to assist in your estate planning process. If you have a simple estate and a limited amount of assets, then it is possible to prepare your own estate plan. However, if you have a complex estate and/or own a business, then it is recommended to consult an attorney to guide you through the complexities of estate planning and ensure things for your loved ones and business is handled the way you want.
Can My Estate Planning Documents Protect Myself And My Family From Business Debts Or Lawsuits During My Lifetime Or After My Death?
Without an estate plan, any managers and employees of your company run the risk of having to deal with several problems. The business could suffer during the ownership transition and need to sell assets. You run the risk of someone taking over and running the business that does not know how to run the business if a person is not already set to run things after you have passed. If there is no formal plan in place for the transfer of ownership after the passing of the owner, then problems could be serious enough to cause the business to have to close permanently.
Whether or not this happens depends on your situation’s facts and circumstances. It also depends on the type of estate plan that has been put into place. Talking to an attorney who has experience in estate planning, will help you put in place how you want things to be done after you are gone. The most common document used would be a living trust. Assets in a living trust are not subject to the probate process. On top of not having to go through the probate process, if your business is listed in your living trust, your business affairs will remain private through the transition process.
When faced with a situation such as business debts or lawsuits, it is recommended that you speak with your estate planning attorney to figure out the dangers and how to better protect yourself and your family. There is not just one answer.
What Is Involved In A Succession Planning Of My Business If I Plan To Leave My Company Or For What Happens After I Die?
Anyone who wants to create a business succession plan should also have a completed personal estate plan. The two plans might work in conjunction with one another and can save you and your loved ones a ton of stress and heartache at an already difficult time. Having a plan will allow the transition of your business to take place smoothly and without fail as to your wishes.
If something bad has happened within your family and you want to know how to protect your loved ones once you are gone, and need the expertise of a business succession lawyer in Cabot, Arkansas, a business succession planning lawyer, a business succession planning law firm, or a personal estate planning attorney, then reach out to the attorney at Flynn Law Firm. Their experience can help ease your worries!
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