Your business in Texas is likely to deteriorate if you pass away or become incapacitated without an estate plan. Estate taxes, unclear ownership and leadership are the leading business killers. Here’s how you can make sure your business is in safe hands with an estate plan.
Estate planning for business in Texas
Estate planning for business involves setting up strategies that determine how your beneficiaries, business partners, creditors, etc., will deal with your company if you’re incapacitated or after your passing. This is critical because even when you are incapable of working, things should go according to your plan. In addition, a good estate plan can help your beneficiaries or your business itself from suffering serious tax consequences.
Get all documents tied to your business in order
For you to create a solid estate plan, you need to first find all the documents that prove your ownership and authority in your business as well as your other assets. For instance, a financial power of attorney will give someone you trust the power to run your business or estate when you are incapable. While that is in action, you can use an advanced health care directive to give someone power to make medical decisions for you or have your own directives regarding how doctors should treat you when incapacitated. Other important documents include:
- Your last will and testament
- A revocable or irrevocable trust
- Buy-sell agreements
Things to consider
When creating your estate plan, clearly define your goals to your attorney and financial advisor. Your lawyer may advise you on the best approach and strategies to use while considering your family members and business associates.
Sit down with your family members and business partners and talk about your estate plans, making sure that everyone knows and is prepared for what would happen. This helps to avoid conflicts and can even encourage your loved ones to work together to see your wishes through.
Always keep your estate plans up to date. If you miss anything, your loved ones will be forced to go through probate to settle the confusion.