One of your goals for starting your own business was certainly to make a lot of money for yourself. However, now that you have a family, your goals have likely changed. You may see your son or daughter taking over the company and continuing its success for many more generations. You may see your company becoming a household brand — a name everyone knows — and imagine people telling the story of the company’s humble beginnings and forward-thinking founder.
You certainly understand that this dream can’t come true without some careful planning on your part. If you become ill without having a successor trained and ready, your business may falter. If you die without an estate plan to protect your family from the devastating estate taxes your business may incur, your dream may die with you.
Why do I need an estate plan?
Estate planning for business owners can solve many problems before they occur, reducing the chaos that often accompanies the loss of a CEO and family member. If you have partners in your business, your estate plan can present them with opportunities to purchase your share in the company, which may be especially helpful if none of your children are interested or ready to take over your position in the business. An estate plan provides other benefits including:
- Keeps your legacy alive
- Helps provide a smooth transition of assets to your heirs
- Allows you to plan for multiple businesses if you own more than one
- Protects your heirs from overwhelming taxes through the use of trusts and other estate planning tools
- Establishes a plan for the proper management of the company for which you have made so many sacrifices
In fact, planning for the transition of your company to the next generation may take years, and proper estate planning can keep the important elements of your business in place as the company moves through future generations. Along with impressing upon your successors the importance of your business philosophy, you may also wish to impress upon them the value of keeping an estate plan in place and up to date for the longevity of the business.
Where do I begin?
The creation and maintenance of a solid estate plan for business owners may mean the difference between a business that thrives for decades after your death and one that fades from memory soon after you are gone.
If you are ready to take the step toward estate planning for your family and your business, you may benefit from the assistance of a Texas law firm with experience in financial planning and tax issues as well as estate planning. Such an attorney will be able to provide well-rounded advice concerning the most advantageous estate planning tools for your situation.