Although it is important for business owners to focus on day-to-day operations, it is also necessary for them to make plans in case they are suddenly no longer able to operate. Nevada entrepreneurs may want to know about estate planning tips that they can use to preserve their business legacies.
Through a standard will, a business owner can detail what would happen to any assets if he or she were to pass away. It is the most basic estate planning tool and allows the testator, or the person who created the will, to also designate an executor who can administer the contents of the will.
Other estate planning tools include the power of attorney, which gives another individual of the owner’s choosing the authority to manage the business affairs if the owner is incapacitated. If such a document is not in place, the court will determine who will handle the business affairs.
For some business owners, a trust provides the best method for distributing assets. A revocable living trust can be used by business owners who would rather keep financial information private. It is not a public document like a will and does not have to undergo probate.
All entrepreneurs should also have a succession plan. This will be used to transition a business to a new ownership. A good plan will detail hiring guidelines, the method of ownership transfer and more.
An estate planning attorney can draft a last will and testament for a business owner. The attorney may advise the client of the advantages and disadvantages using a will as well as other estate planning tools.