If you are a business owner, you undoubtedly invested a considerable amount of your time, effort, and assets into getting your business started. Then you invested even more to build your business to the point of success it has now reached. The last thing you want, after that, is for the business to suddenly be placed at risk. However, have you thought about what would happen if you had a heart attack, stroke, or a car accident and could not be involved for an extended time? When poor planning, or no planning, has occurred, the business can get into trouble before those left can “figure it out” and get the legal authority needed. Slaton Schauer Law Firm, PLLC can help you plan, providing experience, advice, strategies, and advanced methods to protect your business interests. It is critical for you to have business succession and asset protection planning tools and strategies within your overall estate plan.
Protecting Your Business
You have purchased insurance to make sure your financial interest in your business is protected in the event of loss from theft, fire, or natural disasters. However, if you had a stroke leaving you incapacitated, or died suddenly in a car accident, who would take over your role in the business? Would the person that you have selected have the legal authority needed to be able to step in? If the person you have selected is not a relative, would the person ensure your loved ones were compensated and taken care of, or would rewards for your hard work just disappear? Have you considered the tax consequences your business may face following your death? Is there a plan for transitioning ownership of the business when you retire? Business succession planning can answer these questions and many others.
If you don’t want to pass down your business, it is even more important to make plans for exactly how the sale of the business will occur, who will be in control, and how the financial arrangements will involve (or not involve) your family members. You can ensure that your financial interest in the business is protected.
The primary reason why most small businesses fail to successfully make the transition from one generation to the next is the failure to plan for that transition. Ideally, you should be thinking about the future of your business from its inception. For example, deciding which legal structure to choose for your business will directly impact how you pass it down to the next generation. If you don’t want to pass on the business, it is even more important to make plans for the sale of the business to ensure that your financial interest in the business is protected.
Protecting Your Assets
Protecting the assets you have worked so very hard to acquire over the course of your life should always be an important part of your estate planning process. Whether those assets are personal, or business related, they could all be at risk in the event of your incapacity or death. Without a plan in place, your assets could be lost to Uncle Sam in the form of federal gift and estate taxes, or they could be depleted when you face paying for long term nursing care, whether in your home or in a nursing facility. Fortunately, there are excellent strategies, methods, and asset protection planning tools that can be used to guard your heard-earned assets while you are alive, and also ensure they are protected after you are gone.
The estate planning attorneys at Slaton Schauer Law Firm, PLLC look forward to helping you create an estate plan that protects your business and your assets. Contact our office today by calling 512-258-9455 or filling out our online contact form.