Welcome. Our estate planning attorney in Cary NC is back with more information about owner dependent business estate planning. If you missed our previous blog, visit back with it soon, before moving on to learn more.
Owner Dependent Estate Planning Tips | Estate Planning Attorney in Cary NC
Another option you can include in your estate plan that may prevent lawsuits is to have an alternate plan in place should your business close. You can have information for current clients on where to go to have their service completed, or where to go for goods they may have purchased from you regularly. A good business owner will want to ensure their clients are taken care of even after the business has closed in order to protect their business’ assets and their own reputation.
Documenting the intent to close the business at the owner’s death is important when planning for the taxes that will need to be paid on the owner’s estate upon his or her death. If the business brings in a steady income year after year, you may be able to calculate how much will need to be paid and plan for it accordingly so you can plan how much your heirs will actually be left with, and not leave them with a hefty tax bill that won’t be covered by your assets.
Some business owners take out a life insurance policy that will help cover any issues with liquidity, which will help pay for any business fees or debts that will need to be paid. A business may close at the owner’s death, but there will be accounts that will need to be resolved.
Up next in this series, let’s talk about how to take care of your employees when the business closes due to retirement or your death.
Eldreth Law Firm, PC
Many people have complex financial affairs because of assets such as property or businesses that are co-owned, or because of personal situations such as blended families. If one or more of the following situations, found in our next blog post, applies to you, you may benefit from having an estate planning attorney in Cary NC to help draft your estate plan.
An estate planning attorney in Cary NC who knows about estate planning will be able to review your situation and provide the best solutions that will meet your needs and will also be legally sound. He or she may also suggest other things that you may not have considered before, such as creating a durable power of attorney or a healthcare directive to give guidance in situations where you may not be able to make decisions on your own anymore. There are many facets to an estate plan. Eldreth and Eldreth can talk with you about your situation and help guide you in creating a plan that meets your needs. Contact us, today.
Interested in learning more? Visit other blogs in this series: