While most of us get around to putting a personal Will in place in the event of the unexpected, unfortunately business estate planning (or a ‘business Will’) is less common but equally as important.
A sound business estate plan can prevent complex legal and emotional issues in the event of a business owner or other key person involved in the business leaving through illness, accident or death.
Importantly, it also ensures that the departing owner or their estate (often, their family) will be fairly compensated for giving up their rights to the business.
As unpleasant as the task is, estate planning is one of the necessities in life. It allows peace of mind knowing your hard earned assets will be dealt with in the manner you choose, and also eliminates (or at least lessens) the difficulty associated with these decisions for those managing your affairs (if you are unable to).
Consider the following:
- What would happen with your asset should you pass away, become ill or disabled?
- Would ownership be transferred to a family member, or would your instructions be to sell the business with the proceeds going to a nominated charity, organisation or individual?
- Do you have dependents who are reliant on income from this asset? How will they be cared for adequately?
In our many years of experience we have seen the effects of both thorough and poor estate planning.
A good business estate plan covers off on the essential areas of business ownership, revenue and debt management. Developing a business estate plan involves:
- Meeting to discuss objectives for your estate;
- Confirming assets - valuations, inventories, appraisals;
- Court approval for a grant of administration;
- Documentation involved in estate planning;
- Protecting the assets;
- Paying taxes and debts; and
- Estate distribution.
We highly recommend a business estate plan be put in place to prevent any complex legal or emotional arguments down the line.
At Marley Loft we are experienced in estate planning, and can guarantee the succession plan for your assets will be adhered to. Simply contact us to learn more about this service.