Business owners in Nevada should be aware that estate planning is an important part of a business plan. Estate planning can provide a form of protection for their business as well as their family, business partners, employees and customers.
A will is the most basic component of an estate plan. If the will is properly drafted, it will provide clear instructions for the executor of the estate on how the assets should be managed or distributed when the estate owner dies.
A revocable trust can be another crucial part of an estate plan. This type of trust allows individuals to transfer ownership of their assets into the trust while they use the assets during their lifetime. The use of the trust allows an appointed trustee to assume management over the assets should the grantor become incapacitated. It also makes the transfer of assets to heirs less cumbersome by avoiding the lengthy and costly probate process and can be used to protect the assets from a beneficiary’s creditors.
An estate plan should also include certain types of powers of attorney. A healthcare power of attorney gives authority to a designated person to make important medical decisions on behalf of an individual if that individual is incapacitated. A financial power of attorney gives someone the authority to manage an incapacitated person’s financial concerns until they are able to resume control themselves.
Business owners should also consider including a buy-sell agreement in their estate plan. The legal document can ease the transition of the business after their death and ensure the financial security of their family.
An estate planning attorney may help business owners with developing a plan that can protect business assets for their beneficiaries. The attorney may assist with trust planning, such as drafting provisions for a living trust.