California business owners have additional needs when it comes to estate planning. Owning a business presents further issues when it comes to business continuity. This goes along with the need for management of personal assets. As a result, the business owner’s estate plan needs to be more extensive than the average plan and should integrate the two areas.
The estate plan should start with the basic documents that are the core of every plan. These include advance care directive and a last will and testament. Where the needs become more pronounced is that a business owner’s estate plan must be specific when it comes to financial decision-making authority. One must have a financial power of attorney so that another can make financial decisions on behalf of someone who is incapacitated.
The most important estate planning tool for a business is the document that lays out the business continuity plan in the event of death or incapacitation of the owner. Each business must have a succession plan in place detailing what will happen to the business and who will be responsible for running it. The succession plan should cover death, retirement and incapacitation of the owner. Finally, business owners should review their insurance and make the necessary plan to avoid their heirs being hit with a large estate tax bill if they inherit the business.
An estate planning attorney is a must when one is trying to figure out the appropriate plan for their business. With business estate plans, there are additional areas of the law that come into play. Business owners will need advice about a comprehensive approach that leaves no contingency uncovered. If not, the business could come to a halt if the owner is incapacitated in any way, and what they worked hard for could die with them.