If you have no personal estate plan, chances are you have no Trust established to protect your business in the event of your absence, death or disability.
Without a Business Trust, your loved ones may find themselves financially trapped. With a Trust, your business can continue to operate free of court interference.
If something should happen to you – an extended illness, an accident, even death – business revenues could be used to pay your debts…your personal debts. Many business owners simply don’t realize that when too little personal money exists to pay your debts, the government may turn to business revenue to make up the shortfall. If that happens, the business then must either pay the debt in full or assume the debt.
The issue is not one of simply losing money. Your business could be shut down because it has run out of operating capital.
Estate Planning: Run Towards It, Not Away from It!
Do you cringe when you hear the words “estate plan”? Don’t. When you, as a business owner, take the time to create a financial plan, including how you want your business to survive in your absence, the business can continue to operate and your peace of mind increases dramatically. Your best bet is a living trust, which keeps your business running without the lengthy, unpleasant probate process. A living trust also helps you plan for the unexpected and minimize taxes to ensure the continued health of your business.
A good place to begin is with succession planning, a valuation of your company and its tax burden. Think of it as a business system outlining a clear chain of command allowing your business to run smoothly without you. Oftentimes, your estate trustee can also supervise your business affairs. Your estate planning attorney is best equipped to advise you.
It’s no surprise that all business owners are, well, busy. Too little time…too much to do…it’s just too easy to procrastinate about planning for your financial future. But it’s a terrific alternative to losing everything you’ve worked so hard for.
In Missouri, estate planning attorneys at Quinn Estate & Elder Law will patiently and effectively assist you in getting a clear picture of your financial future, so you can plan for life’s uncertainties.
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