When you created your estate plan, you were employed by a company you no longer work for. After leaving that job, you start a family business. You’ve since taken care of the necessary paperwork, you’ve opened your doors for business, and you are working hard to make this business a success.
But There Is More You Need to Do
As with all of your assets, you’ll need to decide what happens to your family business when you die. If you do nothing, you may put the family business and the livelihood of any loved ones who work there at risk. This can be avoided, however, if you modify your estate plan to include your family business.
One way to make sure that the business continues to operate with minimal disruption and stress for your relatives and customers is to create a trust. A trust can:
- Prevent delays in probate court that could hurt the operation of your business.
- Make it clear who now has ownership of the business, so the business continues to operate. If you have minor children, you may be able to leave your business to them while naming someone to act on their behalf until they are old enough to own it.
- Provide specific assets that should be used for taxes or estate administration costs.
you start a family business. Find out why you should work with your estate planning lawyer to make significant changes to your estate plan. If you need help creating a trust or deciding how best to protect your family business, we encourage you to start a live chat with us today. Additionally, we invite you to sign up for a free newsletter to stay up to date on important issues that could affect your estate plan.