Navigating Estate Planning as a Business Owner

Navigating Estate Planning as a Business Owner

Tips on ensuring personal and business assets are well-planned and protected.

Estate planning, particularly as a business owner, presents itself as an overwhelming process. With specialised advice, however, it becomes a painless process that will land you on the other side feeling confident that your personal and business assets are safely tended to.

Personal vs business assets

Personal assets include property, land and investments you hold in your estate. Typically, they are passed to close family members. Business assets, however, remain in the custody of your business. They will pass to whomever you have nominated as your successors to your business, often being your children.

Tips to manage personal and business assets

Estate planning may seem like a futile venture, particularly if you are below retirement age. The mistake that many business owners make is believing there is no need to invest time in such an endeavour when they are happy and healthy. However, the future can be unpredictable and an estate plan becoming crucial may arrive sooner rather than later.

Hence, create an estate plan early on in your business career and take careful time to make it perfect. This includes seeking specialised advice who will help you consider all stakeholders and possible scenarios, and will review the plan with you every year.

There are a number of documents required that are crucial when navigating estate planning as a business owner. Namely, your Enduring Powers of Attorney, Personal Will, life insurance, the exact worth of your business and all business agreements including shareholders, leases, subleases etc. Without these documents, the process of determining who will receive your assets and business accession will be a longer, more arduous process.

Finally, with the help of a lawyer, a clear and accessible succession plan unencumbered by legal jargon (with note of tax implications) is a must. If you do not plan for your children or another party to inherit your business after your passing, preparing to liquidate or sell your business involves choosing who will receive your assets and paying off any debts.

If you have further questions or are uncertain about any aspect of your lease, please contact me. I am here to help.