The importance of estate planning for business owners

On Behalf of | Jan 2, 2020 | Trusts

Business owners in Nevada and throughout the country will ideally take the task of estate planning seriously. Doing so may help to ensure that a company is successful after the original owner no longer owns or operates it. While many people wait until later in life to put together such a plan, it may be best to do so as early as possible. A company owner can start the planning process by naming potential successors long before any changes need to take place.

A trust makes it easier to ensure that business assets are transferred in a quick and relatively easy manner. It may also make it possible to minimize or avoid paying estate or other taxes on assets a person owned or transferred at the time of his or her death.

Creating a clear will or trust may prevent family infighting or challenges to a proposed succession plan. This is because beneficiaries will know who they are and what they can expected to receive. While they may not agree with all the decisions a person has made, they may feel less resentment toward each other. A lack of resentment may make it easier for family members to work together to solve any problems that occur after an individual passes or becomes incapacitated.

The use of a will or trust may make it easier for a person to meet his or goals while incapacitated or after passing. This is because a trust typically allows an individual to name another person to manage his or her affairs in these scenarios. In some cases, it may be possible to create an estate plan that accounts for what might happen if a business owner is temporarily incapacitated. An attorney may provide insight into how a plan may be structured.