If you are an entrepreneur, you know all about taking risks and planning for the future of your business. However, you need to protect your business and all your hard work when you are no longer around. That’s where estate planning comes in. It is not just for people with big houses and fancy cars. Entrepreneurs especially need a plan to make sure their hard work keeps benefiting the right people, even when they are gone. The following are some steps to take to build a solid estate plan.
Key steps in estate planning for entrepreneurs
One of the most important aspects of estate planning is for you to craft a will. It’s like a map that shows where you want your stuff to go. Without it, the laws of your state decide, and they might not pick the person you would have chosen. Next, think about a power of attorney. This person can make decisions for you if you cannot, including business decisions. Also, look into a trust. It can help skip the long and public process of a court deciding what happens to your assets. This is called probate. Trusts can also manage how your assets help your family or your business after you are gone. Entrepreneurs have unique needs, like what happens to their share of a business.
Starting your estate plan
Getting started might feel overwhelming, but it does not have to be. The first step is to list what you have: your business, investments, property and anything else that is important. Then think about who should get what and put all that information into writing.
Starting now means you are ready for whatever comes next. Your hard work keeps paying off for the people and causes you care about.