A Florida business owner should be aware that their company is just as much a part of their assets as their home and vehicle. If an owner passes away without planning their estate, the state will decide how the business is divided up. It’s important for business owners to make a will, plan their line of succession and make other decisions related to dealing with incapacitation or passing away. They should also make sure their insurance coverage is up to date so they and their family members are covered if the unexpected happens.
What businesses owners should know about estate planning
During the estate planning process, one of the most important steps is writing a will. This document declares how assets will be distributed after death, including business assets. Business owners should also write a living will that tells health care workers how to proceed in certain medical situations.
Additionally, one should name a financial power of attorney to make business decisions while they’re incapacitated. They can also appoint a medical power attorney who performs the same function, but with medical-related decisions.
Business owners should also figure out a succession plan that outlines what will happen to the company after they pass away. They might choose to pass it on to a family member, sell to a buyer or close it down altogether. In addition to life and disability insurance, business owners should also invest in key person insurance that can cover certain expenses for the person who takes over their business.
Where to go for more information
Business owners looking for more information about estate planning might be interested in contacting an attorney. Your attorney could help evaluate your assets and prepare the documents needed to be ready in the case of death or incapacitation.
