Building and running a successful business takes time, money, and a whole lot of dedication. For many entrepreneurs, their business is their life’s work and their legacy. As such, they really should plan for the future of the business when the time comes that they are no longer around to run it. This often comes up in terms of retirement, but it should also be carefully considered when engaging in estate planning. After all, forgetting to address a business in your estate plan may cause it to be left in the hands of someone is inept in business affairs.
For this reason, it is often wise to engage in some sort of succession planning. Those who are sole proprietors can simply choose who they want to take over the business upon their passing and specify that in a will. Alternatively, the business can be left to a beneficiary in a trust so that regular income can be generated for the beneficiary while affairs are managed by others. In businesses with more than one owner, the matter may require much more attention to detail.
Therefore, leaving a business in the right hands requires careful consideration. Oftentimes this means identifying those who have the skills to perform the work required and training them to be the leader or leaders of the future. It is thus usually wise to discuss these matters with loved ones prior to solidifying an estate plan and a succession plan.
Thinking about estate planning can be overwhelming and complicated, but it is a small price to pay to protect your life’s work. Also, you can rest assured that your assets are adequately protected when you work closely with a skilled estate planning legal professional who can assist you in bringing your vision of the future into fruition.