Most people think that estate plans are only for those with significant wealth. However, plenty of other people can benefit from wills and trusts. This is particularly true for business owners who have personal assets aside from company-related assets. General partnerships can be an issue because an unexpected tragic death could leave the business in jeopardy under certain conditions. It is generally best to prepare for the unexpected, especially for Texas business owners with highly successful operations.
The first consideration in estate planning for business owners is protecting personal assets outside of the company. These following documents could address these particular concerns:
- Last will and testament
- Living trust
- A designated financial power of attorney for incapacitation
- A medical power of attorney
- Living will
The next concern for a business owner is deciding who will take their position with the company regarding ownership and operating decisions. This is also an area where a primary estate holder will want to consult with business partners as well as a Texas estate planning attorney. While some families will want to continue a business, many others may want to sell. The percentage of ownership can also be included in any inheritance plan or trust deemed most effective for protecting assets from creditors and tax liability assessment.
These are just some of the serious issues that business owners may face when they pass on. With help from an experienced Texas estate planning attorney, an owner could craft a plan of action that lowers the family and other business partners’ stress levels. Attorneys typically advise that business owners who are not prepared could well be exposing all of their personal and company assets to collection from creditors.