Estate planning is an important process for small business owners to ensure that your assets are distributed according to your wishes after you pass away. It is a long and detailed process that involves multiple questions, scenarios, and hypotheticals to address. Consulting with an experienced attorney, such as Cara Law, is recommended to assist you with putting together a comprehensive business estate plan.
Here is what you can expect during the process of estate planning for your small business:
- Draft or update your will and estate plan.
- Communicate openly about your business succession plan.
- Draft a buy-sell agreement (for businesses with multiple owners).
- Focus on tax efficiencies.
- Confirm you have enough insurance.
- Maintain proper records (and disclose where they’re kept!).
It is important to note that one missed issue can result in years of litigation if you die or become incapacitated, so, it is best to not attempt to put together an estate plan on your own.