Importance of Wills and Estate Plans for Business Owners
Everyone should have a will and some type of estate plan, even if they feel they don’t own much. Small business owner wills are part of that. It ensures a smoother transition of assets after death. For those who own businesses, no matter the size of the business, this is especially important. You need to make sure you are taking care of your personal assets and well as determining what will happen to your business and all of the assets it has.If you need help, Kahane Law is right here in Calgary. Call today! 403-225-8810.
Calgary is home to the entrepreneurial spirit. Accordingly there are many small business owners here. The Calgary will & estates lawyers at Kahane Law Office help with small business owner wills. Small business owner wills & estates planning are just one part of the three “to do’s” for small business owners.
What Should the Estate Plan Entail?
Small business owner wills
Business owners should have a complete estate plan that includes a will, which determines where your possessions go when you pass away. You are able to determine who gets different parts of your estate, including money, the business, and the assets that go along with the business. For example, you might want to leave your business to your children, who you expect to carry on with the company. In some cases, a living trust might be a better option than a will. They are private, and it can ensure that the assets transfer immediately upon death. Small business owner wills being completed often saves in legal fees as well.
Life insurance for small business owners
In addition to a will, an estate plan should also include life insurance. This is important with small businesses because:
- The small business may no longer be able to function without you;
- The corporation may need life insurance funds to buy our the beneficiaries of small business owner wills;
- The small business may require time after your death before others can start to make it profitable again.
Having life insurance can help to ensure that your family has the money to continue while they are trying to grow or sell off the business. Small business owner wills can direct where life insurance goes or the policy can be owned by the business itself.
Enduring power of attorney for the small business owner
An enduring power of attorney can be the single most important (and least expensive) small business owner wills & estates planning document. It can ensure that that the small business survives the owners loss of ability to make legal decisions. Without this small business owner wills & estates document, the business can literally loose its ability to function within months. Enduring power of attorneys can prevent this. Learn more about enduring power of attorneys.
Business owners might also want to have some type of succession plan in place for their company. Instead of merely turning the business over in small business owner wills, a succession plan will ensure that those who take over the business know exactly what they need to do and where the company is currently from a financial perspective. This includes a plan for an estate freeze to freeze taxes. This will ensure they know what the business owns and who they own. It will also include contacts, account information, and other items pertinent to running the business.
Plan Early With Small Business Owner Wills
There is no such thing as planning too early when it comes to your will. Business owners who want peace of mind for themselves and their family will want to make sure that they plan as early as possible. This helps their family to avoid confusion and added unpleasantness after the death of the business owner.
Of course, understanding the finer points of setting up wills and estate plans is difficult. Do not fall into the trap of believing that you can do it all on your own with some online forms. There is always the chance that you could be missing something important, which could come back to haunt your family later. Your best option is to work with an estate planning attorney in Alberta who can help you with the process from start to finish. They will let you know what you need to do, the paperwork you need to provide, and will give you an idea of how things will transpire after you pass away.
Small Business Owner Wills & Estates Lawyers in Calgary
The small business owner wills & estates lawyers at Kahane Law Office in Calgary, Alberta are pleased to assist you in drafting your will and estate planning documents with your small business in mind. You can reach us toll-free at 1-877-225-8817, 403-225-8810 locally or email us directly here.