There are a lot of ways that a sound estate plan can benefit your business. In fact, getting things organized in this regard should be an essential part of your business strategy. This is because — if you die unexpectedly — the government can hit your business with estate taxes and/or death taxes, which could serve to lower the value of your business by half. So, in order to encourage New York business owners to set up an estate plan, let’s take a look at the following benefits.
Firstly, estate planning offers you the option of a buy-sell agreement. With such an agreement in place, if you have a business that includes multiple co-owners, then those co-owners will have the ability to purchase your business automatically at the moment of your death. This way, the deceased owners’ beneficiaries will not immediately become the owners of the business, but they will receive the full value of their rightful share of the business.
Secondly, a soundly planned estate will ensure the longevity of your business. It takes a long time to build a good brand. Think of the following examples: McDonald’s, Wal-Mart and Coca-Cola. These brands were not built overnight and they had to survive the death of their original founders in order to become what they are today. With estate planning, you can create a sound management team capable of protecting the sanctity of your business brand as it is passed down to future generations.
These are just two important benefits of estate planning for businesses. There are many more. By discussing your unique needs — and the organization of your particular business — with a New York attorney who is well-versed in estate planning law, you can determine the best strategies for planning your estate in a way that protects your business for future generations.
Source: Huffington Post, “5 Things Estate Planning Can Do for You and Your Business,” Kc Agu, March 31, 2016