Why is the end of the year a good time to consider trust and estate planning for business owners. Do you own real property or have other investments outside of your business interests? Have you given any thought to what would happen if you become ill or incapacitated and are no longer able to manage your business interests? It is in all of our best interests to have a plan to protect all that we’ve worked so hard to build, and to provide for our spouses, children, and loved ones.
The only constant in life is change. Change often involves curve balls, unexpected challenges or developments that can threaten the things you care about most. What would happen if you lost your life in an accident or due to an unexpected illness?
Trust and estate planning for business owners should answer every one of these questions and more. Look for an integrated business, estate planning and tax entity that can provide insight into where things stand, and provide alternatives for how to protect your loved ones, business and assets as you work toward the future.
Have you discussed a succession plan with your business and estate planning advisor(s)? Your business succession plan protects your company and ensures continuity if owners, officers or key employees leave, become ill, pass away or retire. Who will run the company in your absence? Is the strategy going to be focused on simply keeping things going or will it be time to consider selling the business? Do you have a subordinate, spouse, child or trusted employee who is prepared to step in on a moment’s notice? Have you considered insurance to protect your company and to provide needed financial resources necessary to attract outside help, if needed, or to prepare the company for sale?
How about simple life insurance for yourself and spouse? How do your existing plans provide for your spouse and family if something were to happen to you? Do you have young children? Are you concerned about children with special needs, a challenge such as an addiction, or those who have yet to learn the skill of money management? How would your children and beneficiaries manage the inheritance of a large sum of money?
If you own a house, it is important to ensure it passes smoothly your spouse or beneficiaries with minimum impact as it relates to cost, taxation and even time. Effective trust and estate planning for business owners avoids substantial probate costs, will contests and other costs and legal issues associated with passing assets, business interests, and wealth to our beneficiaries.
Perhaps one of the most important reasons of all is privacy. Without a trust and well-conceived estate plan, theoretically anyone can walk into probate court and look at every detail of your estate. The amount of personal information disclosed regarding your heirs and beneficiaries is comprehensive, and there are organizations that collect this information from public probate records and offer information about your spouse, children, relatives, and beneficiaries are, and even important personal information such as their address and phone numbers, email and contact information, and even social security numbers to anyone willing to subscribe to their services.
Trusts protect your private information from the prying eyes of neighbors and the curious, creditors, and those who would prey on beneficiaries who come into sums of money. Revocable trusts avoid the fees, costs and time constraints of probate, and allow your intentions to be followed in an immediate timeframe if something were to happen. Your trust and estate planning should work hand-in-hand with your business succession plan to protect your business interests and everything you’ve worked so hard to build, while ensuring your intentions are followed.
2025 is only a few weeks away. What will the new year bring for your business and personal life? This is a great time of year for review, analysis, planning and preparation for the coming new year. Your integrated business, estate planning and tax team will develop strategies to minimize tax exposure, shield your money and assets, protect those you love and care for, and organize the planning required to ensure success, now and in the months and years to come.
The resulting firm foundation of trust and estate planning for business owners frees them from concerns about these matters, so they can focus all of their energy on expanding business opportunities and managing the rapid level of change facing all business sectors and markets in 2025 and beyond.
Contact the experienced trust and estate planning attorneys at Allen Barron to review any existing plans you may have, and to prepare and implement updated trust and estate planning for business owners to protect your present and future assets, and ensure that your chosen beneficiaries receive the benefit of all your hard work. We invite you to learn more about the integrated tax, legal, accounting and business consulting services of Allen Barron and contact us or call today to schedule a free consultation at 866-631-3470.
