What is estate planning?
Estate planning refers to the process of arranging your legal and financial affairs to ensure your assets and property are distributed according to your wishes if you become incapacitated or pass away. This includes drafting essential legal documents like a will,
living will, power of attorney, etc.
Do I really need a will?
Yes, having a will is one of the most important things you can do as a business owner. A will allows you to specify how you want your assets distributed, appoint guardians for any minor children, and name an executor to carry out your wishes. Without a will, the state will determine how your assets are distributed according to the intestacy laws.
What is a living will?
A living will, also known as an advance healthcare directive, specifies your wishes regarding medical care if you become terminally ill or incapacitated and unable to communicate. It allows you to appoint a healthcare proxy to make decisions on your behalf so your wishes are honored.
What does a power of attorney do?
A power of attorney authorizes someone else, known as your attorney-in-fact or agent, to act on your behalf for legal and financial matters if you become incapacitated. There are two main types: a durable power of attorney which takes effect immediately, and a
springing power of attorney which only takes effect if you become incapacitated.
Do I need a trust?
A trust is a legal entity that holds your assets to be distributed according to your wishes. It offers certain benefits like avoiding probate, reducing estate taxes, and keeping the distribution of assets private. However, trusts also have legal fees and administrative costs
associated with them. For many small business owners, a will combined with other estate planning tools is sufficient. You should consult an estate planning attorney to determine if a trust makes sense for your needs.
