Business owners tend to focus on ways they can grow their business—and that’s a major what makes the company successful. In the interest of preparing yourself and your company for all contingencies, though, it’s also important to consider what will happen should you become injured or incapacitated—or, if you suddenly die.
Estate planning will help you make these preparations—and as you seek to plan the future of your business, there are a few important estate planning documents that shouldn’t be neglected.
Key Documents for Entrepreneurial Estate Planning
Last will and testament. This is your most basic estate planning document—the one that lets you specify how your assets will be distributed, and to whom. If you operate a sole proprietorship, you’ll need to name an executor who can access digital assets and make sure they are transferred properly.
Power of attorney. A power of attorney can be used to name someone who will represent you—and make business decisions for you—should you become incapacitated in some way. This person will be able to write checks, handle payroll, and manage investments in your stead, ensuring your business remains up and running and your employees are taken care of.
Trust. Trusts can augment wills and provide meaningful benefits—such as minimizing court delays and ensuring that any information you wish to remain proprietary is kept out of the public record. (Wills themselves are public documents, while trusts are not.)
Buy-sell agreement. If you have co-owners or business partners, this document will effectively reallocate your interests in the company, should you die or become incapacitated.
Succession plan. Finally, a succession plan outlines the path forward for your company, once you die—including naming your successor.
If you own a business, and if you’re unsure of your own estate planning efforts, reach out to Singh Law firm today, and speak directly with an expert.