Estate planning is one of the most important components of financial planning. An estate plan protects you, your family, your assets, and your business after your passing. Outlining everything from the beneficiaries to the executor of your estate can be a complicated process. When your business and all of the stakeholders who are dependent upon it, there is an added level of stress. Juggling the needs of your family and business requires continuous maintenance, but here are some ways you can protect everything you care about in the event that you’re unable.
Selecting Stakeholders for Your Estate
Every parent wants to leave behind a legacy for their children, but every parent also knows their children’s different strengths and weaknesses. If your children worked with you and helped build your business, there is a strong chance that they can continue running the business after your passing. If your business includes employees and shareholders, you may have an obligation to take them into consideration when planning your estate. It’s not easy having to explain to any of your children that the business you built will not remain within the family, but sometimes we have to accept the hard truth that not everyone is capable of maintaining a business. There are also tax ramifications that must be accounted for when leaving a business and its assets into the hands of family members. Establishing an estate plan with a firm that specializes in not only estate planning, but business and corporate litigation is an excellent starting point.
In the event that you are still alive, but unable to continue running your business due to illness or injury, you may appoint a trusted durable power of attorney within your estate plan. The durable power of attorney can maintain the business in your stead during your recovery. Upon your return, you can jump back to work to continue doing what you do best. There are many benefits to a durable power of attorney for business affairs, however, it’s intended to be temporary. Upon your death, you will still need to have named a beneficiary within your estate plan. One reason you may want someone a different person to be your business durable power of attorney is for your family’s well-being. Depending on the circumstances of your inability to continue managing your daily life, your family may prefer staying by your side or aiding in your recovery during a very stressful time.
Incorporating Your Family Into the Estate Planning Process
While you’re working with a team to establish or update an airtight estate plan, it’s important to make sure that your beneficiaries are on the same page. For example, you may have a beautiful plan for your son or daughter to take your place at the helm after your passing, but the reality is that they may have different life plans. Including beneficiaries in the estate planning process maintains good communication and smooth execution of your estate plan. Make sure that your beneficiaries are ready, willing, and capable of managing the expectations you’ve outlined within your estate plan.
At Waserstein & Nunez, we understand that the future of your business and family are intertwined. We take into account that family dynamics are often more important than tax and liability protection. If you have questions about how your business should be managed within your estate plan, call 305.563.1011 to schedule a consultation with an estate planning lawyer.
Waserstein & Nunez, PLLC
Latest posts by Waserstein & Nunez, PLLC (see all)
- Defend Your Brand Through Trademark Litigation - October 15, 2023
