Why Every Business Owner Should Have an Estate Plan

Yee Law Group Inc. > Why Every Business Owner Should Have an Estate Plan

Sacramento Estate Lawyer

Although estate plans are generally thought of as personal documents for those with large estates, there are many other people who would benefit from having one in place. Business owners are a prime example. Learn more about why every business owner should have an estate plan, and how you can work toward putting one in place to protect your investments. Call an estate litigation attorney from name of firm for details. In the meantime, the following is a brief overview.

Business Ownership Can Lead to Hefty Tax Bills

Taxes and business usually go hand in hand. Death of the owner does not necessarily change this. In fact, even a small business can pull a hefty tax bill after its owner has passed away. The consequence of this is often a lengthy probate process and significant depletion of the estate. Heirs ultimately suffer from this, sometimes being forced to pay taxes as high as 55 percent on the business and estate and may even be forced to sell the business to settle the debt.

Trusts, Transfers, and Buy-Sell Agreements

There are numerous ways that business owners can protect their businesses with effective estate planning, but some of the most commonly used include trusts, transfers, and buy-sell agreements. Trusts allow you to transfer the business prior to your death while you continue to run it, a buy-sell agreement can help your heirs avoid the mess of haggling with a partner about price, and transfers to children or other heirs who are partners in the business can reduce the risk of estate freezes. Each option is used for a unique situation, and there are certain aspects that should be considered before implementing any one of these plans. An estate planning attorney can help you determine which would be best for your situation.

Getting Started with Your Estate Plan

Whether you have been running your own business for years or have only started to think about opening your own business, the assistance of an experienced estate planning lawyer is crucial to the estate planning process. Not only are they able to ensure you understand how certain variables may impact your heirs and the future of your business, they can assist you in developing creative solutions to address or mitigate any of these special considerations. In addition to working with you on the business-related aspects of your estate plan, an experienced lawyer can also assist with your personal estate. This holistic approach can help ensure your heirs reap the most benefits.

Contact Estate Planning Lawyers

A Sacramento estate lawyer at Yee Law Group understands that each estate planning situation is different. It is why they offer all their clients personalized services. Learn more about how estate planning lawyers can assist with your estate planning needs. Call to schedule your consultation today.