Everyone is encouraged to set up an estate plan in a timely manner. This is a great way to allocate assets, pre-pay for all funeral costs and leave the family some peace of mind. For the business owner in Florida, there are several more steps involved in estate planning. A business owner has to put together a business succession plan, take care of the insurance policies and taxes that will be owed on the estate.
Typical estate planning documents include the last will and testament as well as a living trust, financial power of attorney and medical power of attorney. Individuals are also encouraged to put together an advance health directive or living will. These documents are helpful for the family that gets left behind, too. Basically, the individual makes all the hard choices for them.
Next, a business owner needs to put together a succession plan. High-profile companies put this together for their executives within a few days of giving them the position. A business owner who wants his company to outlive him will decide if the company is going to get passed on to a family member, if the shares will be sold or if the business is to be sold to a third party. There is also the option to shut it down.
Then, a business owner has to get into the weeds of insurance and taxes. Life, disability and key person insurance are all musts. When it comes to taxes and any other part of estate planning, it is important to remember that legal professionals are readily available to help. A legal professional has a team that may include an accountant that helps the business owner navigate through the process. Plus, they may be able to point out how to maximize tax savings so the assets get passed on to the next generation.
