As business owners, you have likely already invested a considerable amount of time and resources into your business. Protecting your business now that it is running smoothly and showing a profit should be a primary focus within your estate plan. Not only must you protect your investment from the possibility of your death but of your incapacity as well.
At Amato Law, PLLC we can help you protect your business and your assets by incorporating business succession and asset protection planning tools and strategies into your overall estate plan.
Protecting Your Business
Your financial interest in your business is undoubtedly protected against losses caused by things such as theft, fire, or natural disasters; however, have you considered what would happen to your business if you were to die unexpectedly or become incapacitated because of an accident or illness? Who would take over your role in the business? Does your chosen successor have the legal authority necessary to run the business? Have you considered the tax consequences your business may face following your death? Is there a plan for transitioning ownership of the business after you retire or when you are gone? Business succession planning can answer these questions and many others.
The primary reason why most small businesses fail to successfully make the transition from one generation to the next is the failure to plan for that transition. Ideally, you should be thinking about the future of your business before it is even up and running. The legal structure you decide to create for your business, for instance, will directly impact how you pass it down to the next generation. If you don’t want to keep the business in the family, making plans for the sale of the business is even more important to ensure that your financial interest in the business is protected during your lifetime and passed on to your family in the event of your death.
Protecting Your Assets
Asset protection planning should be an integral part of every estate plan. Whether those assets are personal, or business related, they could all be at risk in the event of your incapacity or death. Without a plan in place, your assets could be lost to Uncle Sam in the form of federal gift and estate taxes, or they could be lost when faced with the high cost of long-term care for yourself or for a spouse. The good news is that incorporating asset protection planning tools and strategies into your comprehensive estate plan ensures that your hard-earned assets are safe while you are alive as well as available to provide for your loved ones after you are gone.
The estate planning attorney at Amato Law, PLLC look forward to helping you create an estate plan that protects your business and your assets. Contact our office today by calling 212-355-5255 or filling out our online contact form.