Estate Planning Tips For Business Owners
Even a successful business may face serious trouble upon the death of an owner. There are sometimes issues with the complexities of carrying out the wishes of a deceased owner. This can be a tricky area but it is your responsibility to plan for the future of your business after you are gone. Here are some steps that you should take now:
Create a Will
The basic last will and testament is the most important document in estate planning. A will is what a business owner will use to indicate how they want their assets to be distributed after their death. In sole proprietorship, it is important that the will’s executor has access to the testator’s digital assets including online bank account information.
Create a Trust
Creating a trust can help to avoid the need for probate along with the associated costs and delays. If you name a successor trustee, you can pass your possessions on to your heirs without going through the court system.
Create a Buy-Sell Agreement
In partnerships and other businesses with multiple owners, a buy-sell agreement is another valuable tool for managing assets after death. A buy-sell agreement is a document that lays out what will happen to the business in the event of the owner’s death or disability. These documents can vary and may include agreements whereby the surviving owners take over the stake of the deceased owner. A buy-sell agreement can also be useful if an owner declares bankruptcy.
If you are a Utah business owner in Orem, Utah or surrounding areas, one of the smartest things that you can do is to make plans for the future of your business. At Bird and Fugal, we are experienced in estate planning and can help to ensure that your assets are managed according to your instructions. Contact us today to schedule an appointment.