If you are a Johns Creek area business owner or anticipate becoming one, one of the most important things you could ever do to protect your investment involves estate planning. Though your company might be fairly young, it is never too early for you to put plans in place to ensure its operations when you are not able to manage it.
Consider the possibility of you falling seriously ill, having to undergo a major and unexpected medical procedure. If you do not have enough funds set aside to cover those expenses in addition to your company’s operational costs, a major life event could be the reason for its demise.
Trusts can offer protection
A trust can help keep your business afloat in the event of a personal financial emergency. By creating the trust and funding it, you create emergency funds to cover personal and business expenses. For example, if you end up with a large amount of unexpected business debt before you die, after you pass on, your business could end up in probate where creditors can lay claim to your business assets. This could force your business further into debt or force it to cease operations.
Things to consider about trusts
Be careful when creating and using trusts to shield your business from personal debts. Not all trusts work the same way. Every business owner’s situation is different. You should carefully assess your current financial situation and consider the possibility of your family not being in a position to manage them.
Incorporating trusts into your business succession plans is an effective way to ensure your company’s longevity. To avoid making mistakes that could prove to be ineffective and a waste of time, you might want to consider working with an attorney. He or she can review your company’s structure, your personal circumstances and goals to help you come up with an estate plan strategy that adequately protects your company and loved ones.