Did you know that nearly 70% of U.S. citizens have not established an effective legal strategy for passing on their wealth and wisdom?
But when people fail to get their affairs in order, they can end up leaving behind a mess for their loved ones to deal with after they’ve passed away – and this is especially true for business owners.
If you are a business owner in McHenry, IL, Diamond Estate Planning can help you put an estate plan in place. Here are five reasons why that’s important.
1.) To protect your family.
Your net worth is likely tied closely to your business.
Without an estate plan, your family could lose that stake – and in turn, your wealth.
Diamond Estate Planning can help design an estate plan that would preserve your equity within the business so your family in McHenry, IL, is cared for should the unthinkable happen to you.
2.) To carry out your wishes.
Suppose you were no longer able to tend to your business, either because you passed away or become severely disabled. In that case, there are two components of your business that need serious consideration.
A.) Who is in the best position possible to take over your business; and,
B.) How you will divide your assets
Typically, a trust – with conditions – is used to guide and distribute property and funds.
Diamond Estate Planning can discuss trust options with you in detail – helping you determine the best course of action – no matter the size of your estate.
In addition to a trust, when it comes to your business, another method that is commonly used is a buy-sell agreement. A buy-sell agreement allows you to sell your ownership interest to your partners.
Some companies do this through life insurance so that families can receive a lump sum for the business without managing the business themselves.
3.) To manage debt and taxes.
Let’s face it – in life and death, few things are certain, except two things: You’ll always have to pay your debts, and you’ll always have to pay your taxes.
An estate plan can implement a program that will manage lines of credit and taxes to ensure your business and your family’s success moving forward.
This way, your business and your family are not left with extensive bills to pay immediately.
Please know that these debts are often due in full when the holder passes away, so speaking with Diamond Estate Planning to develop a plan is important.
4.) To minimize the estate tax.
If your McHenry, IL business has produced significant wealth, your family members could face a substantial estate tax.
An estate plan can help prevent paying unnecessary estate taxes – implementing tax-saving strategies to ensure your wealth moves into the hands of your loved ones without harsh tax implications.
5.) To make sure your McHenry, IL estate does not go through probate.
When a business owner passes away without an estate plan, the estate usually goes into probate. Probate is when the court decides what happens to you kids and your property (both personal property and real estate owned in your name).
In Illinois, probate is typically required for estates with more than $100,000 in assets.
Contact Diamond Estate Planning to discuss your Estate Plan today
There are many ways that Diamond Estate Planning can protect your business interests with estate planning. Contact our McHenry, IL office today to learn more.
DISCLAIMER: Any information contained herein is solely for informational purposes. While it is important that you educate yourself, nothing herein should be construed as legal advice or create an attorney-client relationship. For specific questions, we urge you to contact a local attorney for advice pertaining to your specific legal needs.