While there is no way you can predict what will happen in the months and years ahead, there are steps you can take that will allow you to prepare for certain contingencies that could arise. One of the ways you can do this is through a completed estate plan, a step which allows you to decide what will happen with your personal property, your potential health care needs and more. Business owners also need to address their companies in their estate plans as well.
An estate plan is a strategy that allows you to decide what happens with your money, property and all types of assets after you pass. You can also set aside and protect assets for a specific use, or you can outline the specific health care interventions you may want in case of incapacitation. You can also draft documents and create strategies that allow you to protect the long-term interests of your business.
Protecting your investment
A business is more than just the way that you earn an income. If you started your company on your own, you have put countless hours of hard work and dedication into ensuring its success. You have the right to decide what happens to it, whether it is after you pass or after your retirement, and a business succession plan can help you do that. A comprehensive estate plan can protect your company, ensure placing the right people in leadership and more. The following are important elements of your plan:
- Funding — It is important that you have enough savings that will allow for the implementation of your business succession plan and to fund continued operations without you.
- Valuation — You will need to know the true value of your business. Proper business valuation is important if you decide to sell, your beneficiaries sell or a partner will buy you out.
A business succession plan is important regardless of the size of your New Jersey company or the nature of your operations. You worked hard to create your business, and you get to create a strategy that will direct the future of the company if you are not around to run it yourself. If you are unsure of what should be in your plan and how to integrate it into your overall estate plan, you may benefit from the guidance of an experienced legal professional.