Estate planning is probably something that you associate with wills, trusts, and taking care of your final wishes in terms of your personal assets and medical wishes. But if you are a business owner in South Jersey, estate planning is an essential action that you need to take in order to make sure that your business is transitioned in the way that you want it to be when you are no longer in the picture. If your business represents the majority of the income that provides for your family, or you have an interest in whether the business remains in your family after your death, then you need to plan and prepare today for the eventualities of the future. At Cohen Fineman LLC, we offer estate planning services for business owners. We can provide you with the ability to develop a plan that reflects your business philosophy and ensures that your legacy will be handled in the way that you wish. In doing so, there are certain facts that you should know and areas of concern that you need to address.
- An estate plan for a business owner is often dependent upon the type of business that you have. If your business is owner-dependent, then your plan needs to be geared towards making sure that you and your dependents are able to maximize the profits for yourselves from current income and retirement savings. Your estate plan will not need to concern itself with reinvesting in the business, or in creating a succession plan. This is often the case with professionals such as physicians, attorneys, or others whose businesses are based on a single person or group having centralized control of business operations.
- As the owner of an owner-dependent business, it is important for you to understand that you need to take action to protect the organization against liability, both through the purchase of appropriate insurance and by ensuring that all contracts are drawn up in a way that will safeguard against indemnification. These plans should extend beyond the date of the owner’s death and the termination of the business – probably for a period of time that encompasses the applicable statute of limitations during which former customers are still able to file liability suits. This is what is necessary in order to provide
- One of the most important things that a business owner needs to do in order to provide their estate with adequate protections is to make sure that their wishes are documented. In doing so you ensure that when the business is valuated for tax purposes, proof can be provided to show that it no longer exists following the owner’s death, and therefore has no value that is subject to estate tax.
As an estate planning law firm in South Jersey, Cohen Fineman LLC is well equipped to assist business owners in setting up a well-crafted estate plan. Call us today to set up an appointment to discuss your needs and begin putting a plan in place.
Learn more about our Estate Planning Services HERE.