The Documents You Need for Estate Planning

Legal Adviser October 17, 2017
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Blue shaded image of living trust and estate planning document. A tax form is also included in the scene.You can only find a few number of people who like talking or thinking about their death. This is probably why a lot of Townsville small business owners postpone estate planning. The problem is, not having an estate plan can lead to upsetting consequences for both your family and your business.

An estate plan allows you to select what’s going to happen if you can no longer operate your business. It defends your loved ones from getting blindsided by business debts or taxes that could have been prevented. By finalising your estate plan, you lower the possibilities of your business causing family conflicts after you pass away. It also ensures that its value stays intact and it won’t end up with a family member that cannot manage it. Here are the typical documents that you’ll need:

  • A will that indicates the individuals who will get your property and money after you pass away. If you do die without a will prepared, your possessions will routinely go to your family. Although the order of importance followed will be the one recognized by the laws of your state, which may not support with your wishes.
  • A trust carries possessions for the beneficiaries of the trust. Trusts are usually arranged to reduce taxes, defend assets or evade probate.
  • Powers of attorney permit someone else to sign documents, handle finances or make decisions on your behalf in case you become debilitated.
  • For a buy-sell agreement, the owners of the company decide to purchase the interest of a disabled owner or the deceased. The takeover may be financed by owner life insurance.

For a small business, a simple set of files may be enough. As your business expands and gets more complicated, so will the process of estate planning. Delaying estate planning is easy, but once you do begin the process you will feel relieved that you prepared your family and your business for the worst. 

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