Although estate plans are generally thought of as personal documents for those with large estates, many other people would benefit from having one in place. Business owners are a prime example. Learn more about why every business owner should have an estate plan, and how you can work toward putting one in place to protect your investments.
Business Ownership Can Lead to Hefty Tax Bills
Taxes and companies usually go hand in hand. The death of the owner does not necessarily change this. In fact, even a small business can pull a hefty tax bill after its owner has passed away. The consequence of this is often a lengthy probate process and significant depletion of the estate. Heirs ultimately suffer from this, sometimes being forced to pay taxes as high as 55 percent on the business and property, and may even be compelled to sell the business to settle the debt.
Trusts, Transfers, and Buy-Sell Agreements
There are numerous ways that business owners can protect their businesses with effective estate planning, but some of the most commonly used include trusts, transfers, and buy-sell agreements. Trusts allow you to transfer the business before your death while you continue to run it, a buy-sell agreement can help your heirs avoid the mess of haggling with a partner about price, and transfers to children or other heirs who are partners in the business can reduce the risk of estate freezes. Each option is used for a unique situation, and certain aspects should be considered before implementing any one of these plans.
Getting Started with Your Estate Plan
Whether you have been running your own business for years or have only begun to think about opening your own business, the assistance of an experienced estate planning lawyer is crucial to the estate planning process. Not only are they able to ensure you understand how certain variables may impact your heirs and the future of your business, but they can also assist you in developing creative solutions to address or mitigate any of these considerations. In addition to working with you on the business-related aspects of your estate plan, an experienced lawyer can also assist with your personal estate. This holistic approach can help ensure your heirs reap the most benefits.
Contact Our Milwaukee Estate Planning Lawyers
At the Law Office of Rollie R. Hanson, S.C., we understand that each estate planning situation is different. It is why we offer clients personalized services to all our clients. Learn more about how our Milwaukee estate planning lawyers can assist with your estate planning needs. Call 414-321-9733 and schedule your consultation with us today.