Running a business is often quite tricky. It involves a high amount of preparation, knowledge, and skill. There are numerous important decisions to make, as well, as well as rules and procedures that must be addressed. But even if you don’t want to think about it, the issue of leaving your business and properties will arise and eventually becomes unavoidable.
Retirement, passing ownership, or passing away are all possibilities. So if you don’t have a solid estate plan in place, there’s a risk that you could lose everything you’ve worked hard to achieve. Having an estate plan is an assurance that your assets will be covered and dispersed in ways that you want them to be.
Writing a will allows you to plan how you want your properties to be taken care of, which is why you must get one drafted before you retire from your business. If you’re planning to contact legal professionals, click here to get help in every step of the estate planning process.
This post will help you understand what estate planning is and why it is crucial for you as a business owner.
How Do You Define An Estate?
All the properties that you own at any given time are all considered to be part of your “estate’. It is the sum of your assets, interests, legal rights, and entitlements to property of any kind. An estate includes personal properties such as jewelry, artwork, automobiles, life insurance policies, bank accounts, stocks, and other securities, life insurance policies, and real estate.
What Is An Estate Plan?
An estate plan is an intentional and active method of legally determining what happens with your valuables and belongings after death. It is not just about having a will but also about taking legal measures to protect your assets, business, or properties.
Why Create An Estate Plan
Irrespective of your age, or the complexity and size of your estate, here are the benefits an estate plan can accomplish:
Smooth Transfer Of Properties To Identified individuals.
An estate plan is an assurance that your property will be transferred to your beneficiaries with few legal hurdles. With an estate plan, your properties will be transferred to those that you identified as quickly as possible without having to go through the long and arduous legal processes.
Avoid The Hassle And Cost Of The Probate Process
If untimely passing happens and you did not have proper estate planning, your estate will fall into probate. Probate means that a judge will decide what will happen to your estate assets. Probate requires legal fees to be paid, and this reduces the overall value of your estate. An estate plan prevents your assets and properties from being allocated in the courts of law.
Continue The Direction You’re Taking For Your Business
It lessens the uncertainty of whether your legacy will continue the way you wish. Businesses and other properties such as real estate are valuable assets that you’ve worked hard to acquire. So, having an estate plan can direct beneficiaries on what course you want for such assets to take and what you envisioned for its future.
Reduce Estate Taxes
Both of your state and the federal government have a claim for estate taxes, so through estate planning, you can help reduce them. However, there are tax guidelines that you’ll need to consider to qualify for tax exemption. For instance, only those estates that are considered very large receive estate tax at the federal level. You can also get an exemption of up to $11.4 of your estate assets.
Avoid Complications Related To Disputes
When you set up a substantial estate plan, your beneficiaries would be identified. Identifying the right beneficiaries would help lessen family disputes and to ensure that your properties end up with those you want to entrust with its long-term control. If there is a plan, there would be instructions to be followed, and fighting over your estate will be avoided.
See To It That The Interests Of Your Beneficiaries Are Protected
An estate plan protects both your minor beneficiaries and adult beneficiaries who are not able to defend themselves. Your family members, your loved ones, and other people close to your heart who you wish to receive your property should be identified in advance. By doing this, you get the assurance that your estate goes into the right hands.
Protect Both Your Estate And Chosen Beneficiaries From Lawsuits and creditors.
It is called asset protection planning and protects your estate from creditors and lawsuits to be filed against you and your business. A lawsuit can come from an employee of your company, previous employer, former friend, neighbor, and family member. In other words, a lawsuit can come from any direction, and you have to prepare for it.
Plan And Give Additional Instructions
An estate plan can also dictate the kind of medical care you wish to receive if you experience a severe illness in the future. Moreover, it sets the type of funeral arrangements you would like and how you will pay the related expenses.
Final Thoughts On Estate Planning In New York
The process of estate planning isn’t just for the wealthy and aging because even college students are encouraged to have one. But since most people either don’t have one or have an outdated plan that doesn’t align with their life anymore or is lacking, it becomes a financial burden. Not having an estate plan puts families, properties, and businesses at risk.
So, before it’s too late, you should contact professionals as soon as possible to begin this vital process.
