The steps one takes to prepare a business for the future are similar to the steps one takes to prepare one’s family for the future. Leaving these to chance means placing family or business at risk of meeting difficult times and perhaps serious financial struggles. For a business, it may even mean its demise if its owner does not take the time to make an estate plan.
For many who form a Florida business and bring it to success, the dream continues with the expectation of passing the business, or at least its assets, to loved ones at the end of their lives. However, this transition cannot happen without taking careful, legal steps to ensure the transition happens smoothly and with little burden to loved ones. The most basic tool a business owner can use is a will. Similar to creating a will for personal assets, a will has its limitations when dealing with a business.
A more effective tool may be a revocable trust. A business owner, by placing his or her assets within the hold of the trust, can be assured of their safe management by a trustee if the business owner should become incapacitated. For other important decisions, especially those related to health, one can name a power of attorney to represent his or her wishes in the face of difficult medical decisions.
Many business owners also include a buy-sell agreement in their estate plan to establish terms of success with any remaining business partners. By agreeing to these terms in advance, business owners can rest assured that their families are relieved of making those decisions at a more difficult time. For these and any other estate planning concepts, a Florida attorney is ready to answer any questions and provide sound counsel.
Source: lcsun-news.com, “Estate planning provides protection for business owners“, Sumer Rose-Nolen, Jan. 11, 2018