real estate planning

How Important is Estate Planning When Starting a Small Business?

You have it in mind to start your own establishment, but one day you know that you will transition from this world and into the next life.

However, like everyone else you don’t know when that day will come.

Therefore, it’s always good to plan ahead by leaving a will behind naming the person who you want to inherit your hard-earned business.

If you are unsure as to why it is important to leave behind a will so that your next of kin can know your desire, then this article is for you.

You get to choose who inherits your small company

As you might already know, estate planning is not only for wealthy folks but for everyone who has any form of assets in this life.

If you are a small business owner and want your business to continue in operation after your death, you can have a say in who controls your organization after your passing.

Without an estate plan in place at the time of your death, family members may have a messy time battling out in court deciding which member of the family gets what.

Acts as a protection to your family, especially if you leave behind young children

You have no intention of dying, especially leaving this world young, but you know this is possible any day; whether young or old, death is inevitable and so you have to prepare for that day to come.

Holly Geerdes, an award-winning lawyer found at https://www.atlantaestatelawcenter.com/ says that preparation for your death is even more necessary if you have children.

It’s clear enough that you have to get a will in place.

Your estate plan will state what your children get in the event of your death.

If your children are below the age of 18 years old, you can state in the will which person must care for them if you die.

In addition, you get to decide which of your assets each of your children get when they reach the age of 18 years.

Without a proper estate plan done in place before you die, the court will decide who raises your children and so on.

The person that the court chooses to raise your kids might not be the ideal individual you want to leave them with.

Protect adult beneficiaries as well

Apart from protecting children that don’t reach the age of adulthood, your estate plan acts as a covering for your adult beneficiaries as well.

You can choose which adult beneficiary takes control of your small business when you expire from this world.

You may want to leave your business into the hands of more than one adult beneficiary, sure you can.

However, make sure to put into your will how much percentage of the business each person should own.

Overrides any spoken agreement

Some people die without leaving a will sometimes because they feel within themselves that they already told their family members what each one should get.

If this is the case with you then you are asking for trouble as your small business can turn into a family squabble quickly.

A written will covers all the bases and even overrides previously spoken agreements made concerning ownership and asset distribution in your small business.

To put it bluntly, your will signed by you has more power than the words that leave your mouth.

When the time comes and you die, your estate plan will be read to family members and sometimes friends.

Whatever is written in the estate plan you leave behind is what will count and nothing else.

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Overrides other pre-written wills

Even before your death, some family members are already planning to take control of your small business.

In fact, they even took the initiative and wrote their own will ahead of time.

Refuse to sign any document that you did not approve of.

How they decide your small business’ future may not be what you want.

Still, you can override their behavior by preparing your own will and choosing who you want to continue your organization after you are gone.

If in doubt, have a qualified lawyer assist you to plan your estate so you will have peace of mind even while you are alive.

Speak to your attorney and let him or her know what assets you own and if you have any estate planning documents put aside.

Your beneficiaries can benefit in many ways if you leave a will that expresses your desire behind concerning your establishment if you should die.

Knowing that your deepest desires will be met concerning who owns your enterprise can make your transition from this life an easier one.