Business owners and entrepreneurs in Texas know the importance of planning. The same concept can be applied to their estate planning.
Many entrepreneurs aren’t considering estate planning when trying to get their business off the ground. It’s more important than ever to start your estate planning process early when you have a startup.
Estate planning in a nutshell
Estate planning is creating legal documents that ensure your assets get passed down to your family after your death. The court will use these documents to expedite the probate process, allowing your family to inherit your estate easily.
The benefits of estate planning are immeasurable. A quicker probate process means fewer court fees. Estate plans can also reduce the taxes your family will pay upon death.
The biggest benefit is the emotional one, though. If there is no estate plan, the probate process can become lengthy. Your family might fight over who claims assets like your business or home. This can be emotionally (and financially) draining for all involved.
Address your business in your estate plan
Small business owners must consider their business when estate planning. If there are questions regarding ownership or responsibility, it can cause a hiccup in the business or force it to close.
Your estate plan should address some succession plan in the event of your death. Maybe you want your children to inherit it, or maybe it should go to your work partner. Your estate plan can also answer questions regarding other scenarios, such as:
- How operations should continue
- What support should be given to employees
- What happens to specific business assets
Be strategic with your estate planning
Estate planning can help you in many other areas, such as further succession planning and avoiding estate taxes. You should adjust your estate plan throughout the years, alongside any big changes to your family or business.
Entrepreneurs might be tempted to avoid estate planning until the last possible minute. But creating your estate plan early will give you and your family peace of mind and ensure your business’s success.