How to use estate planning to ensure your company’s longevity

As a small business owner in Johns Creek, you have managed to build up a lucrative business from the ground up. The one thing you may have overlooked along the way is making your estate plans. Without them, all of your hard work could be in jeopardy. 

Estate plans help to protect your wealth and legacy so that you can pass it down to your loved ones with minimal interference from the state. Chances are, your company accounts for a large portion of your wealth. In order to ensure that it survives and remains profitable after you die, you should consider the following factors about estate planning and business succession

End-of-life care funds

You can designate how you want your company to transfer in the event you are no longer able to run it, or you die. You may need to sell a portion of your business to help cover some of your end-of-life medical and living expenses and funeral costs. By selling your stake in your company to your relatives, you can recover the funds you need and avoid certain estate fees, such as the gift tax. 

Living trust 

You can pass your company to another individual through a living trust. Once you do this, you are no longer the owner of the business. After establishing a living trust, you must transfer your company to the trust and then name a successor. The successor is the new owner of the business. You can still manage your company as you normally would while you are alive, until you are no longer willing to or become incapacitated. 

Buy-sell agreement 

If you are not quite ready to hand over the reins to your company, you can create a buy-sell agreement. The agreement gives the potential new owner the opportunity to purchase your interest in the company when a qualifying event happens, such as retirement, illness or death. 

Illness and death can strike at any time. Make sure you are prepared by making arrangements for your company’s succession in your estate plans.

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We are ready to help you start planning. To schedule an initial consultation, call us at 770-822-2723 or 866-735-9628. You may also contact us online.

ESTATE PLANNING LAW GROUP OF GEORGIA,

Johns Creek Office
11555 Medlock Bridge Road, Suite 100
Johns Creek, GA 30097

Toll Free: 866-735-9628
Phone: 770-822-2723
Fax: 770-573-3379
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1755 North Brown Road, Suite 200
Lawrenceville, GA 30043

Toll Free: 866-735-9628
Phone: 770-822-2723
Fax: 770-573-3379
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