Why Business Owners Need Estate Plans
Our Lake Jackson, Brazoria County, TX wills, trusts, and probate attorneys explain how estate planning can help business owners.
When unexpected events happen, it can throw your life into chaos, jeopardizing your family, financial security, and the success you have worked hard for over the years. Estate planning helps to ensure you and those you care about are protected. Taking the time to ensure you have the appropriate legal documents in place is something that everyone should do, but it is particularly important for business owners. Our Lake Jackson, TX wills, trusts, and probate attorneys details six common reasons why business owners need an estate plan and the types of documents that can help ensure you are protected:
Estate planning provides a complete inventory of your assets.
A will helps you avoid potentially costly and time consuming proceedings in the Brazoria County Probate Court and dictates how property and assets are divided among your heirs. It can also provide an inventory of all real estate, personal property, financial accounts, and shares in business you possess.
Estate planning protects you in the event of incapacity.
Accidental injuries, unexpected illnesses, and chronic health conditions can all leave you incapacitated. In this situation, putting advance directives in place and naming someone to act as your Power of Attorney ensure your business is attended to and important decisions are made in accordance with your wishes.
Estate planning specifies what happens to your business in the event of your passing.
Without estate planning documents in place, the Texas Estate Code dictates who ultimately inherits your business. A well planned will and buy-sell agreements allow you to address this in advance, either arranging for the sale of your business or reallocating ownership. This can be used in the event of your death or if you are incapacitated and unable to run the business on your own.
Estate planning allows you to transfer your shares in business to family members.
After working hard to build your business, you may prefer that it remains in your family but have concerns about how it will be managed. Creating a Family Limited Partnership now as part of your estate planning allows you to transfer your interest in the business to family members over time while maintaining a hand in day-to-day operations.
Estate planning helps in handling lawsuits and creditor claims.
Lawsuits and creditors claims can easily wipe out your business. Having the appropriate liability insurance policies in place and creating an asset protection trust can help to ensure you are protected.
Estate planning helps you avoid heavy tax debts.
Making planned gifts, transferring portions of ownership, and creating a trust can all help reduce any current or eventual estate taxes owed.
Request a Consultation with Our Lake Jackson, Texas Business Succession Planning Attorneys
At the Cordoba Law Firm, PLLC we are dedicated to ensuring the hard work invested into your business is protected, now and in the years to come. To discuss your options, contact our Lake Jackson business succession planning attorneys and request a consultation today.