Estate planning may seem like something you won’t have to worry about for a long time. However, the reality is that you never know what could happen in the future. Careful planning now can help you, your employees, and your family be more prepared for the days ahead.
As a business owner, you have a responsibility to help ensure that your business transfers according to your wishes at your retirement, or in case of disability or death. A plan crafted by your attorney with appropriate legal documentation is instrumental to helping prepare for a smooth and effective transition.
You’re in Control
Having an estate plan before you ever think you’ll need one can be a helpful investment. To help protect your business, consider the following actions:
- Appointing a financial power of attorney to handle your finances if you become unable to do so yourself
- Putting together a health care directive so your medical-related wishes are honored if you are incapacitated
- Creating a trust to provide directives for your assets, which allows you to name a specific person or legal entity as a trustee
- Putting together a succession plan to ensure someone you trust replaces you as a business owner. This can include:
- Management succession planning
- Ownership transfer planning
- Considering and funding a buy-sell agreement for your business to help ensure a smooth transition of ownership
- Brushing up on tax considerations
If you already have a plan in place, make sure it is up to date and is reviewed every three years to continue to reflect your wishes. An attorney who specializes in estate and business succession can discuss a wide range of planning options and help you develop a plan that fits your needs. Talk to your Federated® marketing representative for a referral to a member of Federated’s network of independent attorneys.
By: Equipment Dealer Specialist Jerry Leemkuil, Federated Mutual Insurance Company