Own a Business? Here’s Why You Need an Estate Plan
- Posted on: Jul 25 2019
When most of us think of an estate plan, we think of a personal document used to distribute our many personal assets after we are gone. However, estate plans can also serve other people, such as business owners. Every business owner can benefit from putting together an estate plan in order to protect his or her investments. The following includes some of the reasons as to why.
Taxes…Even After You’re Gone
Everyone knows that businesses are taxed. But just because a business owner passes away, it does not mean that the taxes pass with him or her. Any business – big or small – is capable or carrying a large amount of taxes after its owner is deceased. When this happens, the heirs of the estate can suffer because the probate process and taxes can serve to diminish much of the estate.
Sometimes a business owner’s heirs are even forced to pay taxes of up to 55 percent on the business and estate and may be required to sell the business in order to eliminate their debt. This is usually not what most business owners desire when they imagine leaving their business to someone.
How to Eliminate Many Unwanted Results
Luckily, there are a few ways that this can be avoided. Business owners will commonly choose to protect their businesses using trusts, buy-sell agreements, and transfers. With a trust you can transfer the business before your death, a buy-sell agreement helps to eliminate heavy negotiations on price, and transfers can help to decrease risk of an estate being frozen during the probate process. Each of these options can be most beneficial in certain circumstances. That is why it is so important to consult with a knowledgeable and experienced California estate planning attorney.
The Law Offices of Brian L. Fox, APLC Help Those in California Who Are in Need of an Estate Plan
Regardless of the type of business that you have, or whether you have owned it for years or are just starting out, an estate planning attorney can help you to understand your options as well as some solutions that would best fit you and your specific business and circumstances. This can also be completed in tandem with your personal estate to make things easier. By looking at how everything affects everything else, you can help to ensure that your goals are met and that your heirs receive their inheritance in the best way.
A Personalized Approach
At the Law Offices of Brian L. Fox, APLC, we understand the importance of you achieving all of your estate goals in order to benefit and take some of the burden off of your loved ones. We know that everyone’s circumstances are different and will work with your specific situation to personalize your plan. To learn more or to schedule a consultation, fill out a contact form or call us at 805-964-1170 today!
Posted in: Estate Planning
