What Entrepreneurs Need to Know About Estate Planning

Often, entrepreneurs fail to create a comprehensive estate plan that includes provisions for the transfer of their business. When left untended, however, the lack of a plan can wreak havoc on a family business. A recent article discussed three estate planning tips for entrepreneurs. First, it is important for entrepreneurs to determine where they would like business assets to go, and to point them into the correct direction. Consider who you would like to inherit your share in the business. If you do not create a succession plan, the business will likely pass to your spouse, if you have one. It is next important to assemble a team of advisors for you business. Typically, such a team will include a wealth manager, trust and estate attorney, insurance agent, and CPA. Be sure that your spouse and children are well acquainted with these professionals, so as to lessen the learning curve later. Finally, be sure to protect your family assets. Asset protection planning should be part of any estate plan for a successful entrepreneur. Speak with your estate planning attorney about various strategies to achieve asset protection, such as irrevocable trusts or business entities. If you would like expert assistance in preparing your estate plan, or for any other estate planning questions, please contact us at 818.956.9200.