Estate planning is a great way for individuals to leave behind peace of mind for their surviving family members. By having a will, the assets are dispersed according to a person’s wishes. While individuals are still alive, they can put together living trusts, too. For a business owner in New York, an added layer of importance is added to estate planning. Here are some important elements of estate planning to consider for those who own companies.
To complete the process of planning an estate, business owners are asked to fill out several documents likely including a will, living trust and financial power of attorney as well as a medical power of attorney and living will. Business owners often already need to have these documents ready to go in case something happens to them because it leads into succession planning.
A business owner probably poured their heart and soul into their company, but one day, they will no longer be around. If a business owner would like their company to survive, then they must go through succession planning. A person will need to decide if they are passing on the company to their children, selling their interest or closing the company down.
Life insurance, disability insurance and key person insurance are great policies for a business owner to hold. They help with costs and set up the beneficiary of the business owner’s assets.
During estate planning, a business owner must address taxes, too. The goal is to minimize the tax burden that their family will face once they pass. The best time to do this is as soon as possible. Planning helps a business owner set up low-tax or tax-free trusts for family members. Since estate planning for a business owner is more complex than for individuals, speaking with a professional is this field is recommended.