Estate planning for small business owners is a crucial part of preparing for the future and creating a safety net for business owners, their partners, and their families. Every state has different laws around estate planning for businesses, so it is essential that you understand Nevada laws and are compliant with them, especially when it comes to business and estate planning laws.
To establish an estate plan that focuses on your small business, you should first seek the assistance of an experienced Nevada estate planning attorney. At Morris Estate Planning Attorneys, our collective years of experience in estate planning have equipped us with the knowledge we need to help our estate planning clients in Nevada. Keep reading to find out why estate planning for small business owners is necessary and how to get started.
Why is Estate Planning so Important in Henderson, Nevada?
It can be easy for small business owners to put off estate planning as they are busy operating and growing their businesses. However, this is never a good idea, especially since their small business is a critical part of their estate, and protecting their business and ensuring its longevity, needs to be addressed.
One of the main benefits of an estate plan is that it outlines how the business will be operated and handled if the ownership changes. For instance, a partner may die or retire, which would require the business to be transferred to someone else.
An estate plan focused on the small business can also provide asset protection that includes protection from creditors and lawsuits. It can also help reduce estate and inheritance taxes, especially if you wish to transfer the business to a family members.
Aside from positively impacting how the business is operated and how ownership is transferred, an estate plan also encourages transparency and harmony. Especially when it comes to small businesses that include family, it is essential to clearly outline business operations and how they will be handled if ownership changes. Having all of these details clearly outlined ensures everybody knows what to expect and there are not any unpleasant surprises or setbacks.
A business estate plan will also take the stress off of your family and business partner’s shoulders when it comes to making important business decisions.
Understanding Estate Planning For Business Owners
Now that you know why estate planning for a family business is so important; how do you get started? Estate planning involving a business may look different than a personal estate plan without a business. You should hire an estate planning attorney in Nevada who can help you consider all of the different factors you may want to include in your estate plan to ensure your business is protected.
Here are some aspects of estate planning for small business owners to consider:
- Succession planning: It is very common for businesses to be transferred to successors over time, whether you are transitioning it to a partner or a family member. Your estate plan can help with this by identifying successors and incorporating specific plans relating to the business so that there is a smooth transition when the time comes.
- Buy-sell agreement: Similar to succession planning, buy-sell agreements are used when a business partner passes away or becomes unable to work. A buy-sell agreement outlines how ownership of the business will be transferred to the surviving partners so that the business can continue to effectively operate and to avoid outside parties assuming ownership of the business.
- Trusts: There are many types of trusts for estate planning that business owners can use for a variety of reasons. Depending on the type of trust, this can help with reducing federal taxes, protecting assets, and creating a smoother transition for successors.
Keep in mind that estate planning and succession planning are both important strategies for small business owners and can often overlap. As a small business owner, you should also consider creating a personal estate plan, which will include your business as one of your assets.
How an Estate Planning Attorney Can Help
Creating a thorough estate plan for a family business can be complex, especially if you do not have any legal knowledge regarding estate planning. Because of this, it is strongly recommended that small business owners seek the assistance of an estate planning attorney in Henderson, Nevada, before beginning this process.
An attorney can help you evaluate your business operations to better understand the types of factors to include in your estate plan. They can also act as a guide and a mediator as you and your partners decide on things like succession and asset division.
Keep in mind that an estate plan for small businesses should also be updated periodically depending on how the business operations have changed. You may want to add successors or additional assets, and an estate planning attorney can help you do this. An attorney will also be up-to-date with any changes to Nevada estate planning laws and can help you update your estate plan to reflect this.
Contact a Dependable Estate Planning Attorney at Morris Estate Planning Attorneys
Estate planning for business executives is a crucial part of running a business that every small business owner needs to prioritize. There can be complex legal requirements, and you want to ensure your business’s assets are in order for the future.
At Morris Estate Planning Attorneys, our estate planning lawyers are dedicated to providing our clients in Henderson, Nevada, with the legal assistance they need to create a small business estate plan. Contact us today at 702-471-0990 to schedule a meeting with one of our attorneys.