The article from the Financial Review details the importance of establishing a finalized estate plan. This legal document details the process for how an individual’s assets will be preserved, managed, and distributed after death. Whether you are a homeowner or a small business owner, the creation of a thoughtful plan is crucial to the protection of your financial portfolio. Much of the estate planning process is needed to help avoid sticky legal and family issues that could potentially arise from an unforeseen death. For many business owners, creating an estate plan is an important piece of preserving wealth for future generations.
The estate planning process can potentially become a very complex situation when the transfer of a business is involved. This effort to create a plan for the future can be derailed from severe infighting between trustees.A potential solution to this problem is the creation of a will. This legal document is a set of instructions that details the individuals whom are responsible for assuming control of the business. Despite many of these troubles, owners should recognize the need to properly forge out a plan that best prepares the transfer of their business on to the next generation.
Another consideration many owners should take when creating an estate plan is how much control they wish to retain after death. The desire to maintain control of the business requires a formal legal plan to be laid out with an attorney. Owners must decide which restrictions to place upon the important decisions of the enterprise. Such limitations are required to prevent the occurrence of dangerous risk factors such as marriage breakdowns, bankruptcy, and spendthrift beneficiaries. Some of these dangerous elements can be mitigated through electing an independent advisor to the oversight of the estate plan. These succession efforts are the best avenues towards preserving the longevity of your business.