When running a small business, you juggle lots of responsibilities. Yet whether you are a new shop owner, a seasoned entrepreneur, or closing in on retirement, estate planning should be high on your “to-do” list. Information in the answers to these popular questions below may help you begin or fine-tune a plan.  

Estate Planning Questions Small Business Owners Ask

What is the purpose of an estate plan?

An estate plan aids you in preparing for the future, including unavoidable events, such as paying taxes and passing away. Effective planning also anticipates events such as retirement, personal health challenges, business emergencies, and liability claims from customers or clients.

What estate planning documents should business owners have?

You should have a will, and life, health, liability, and disability insurance policies, and a succession plan. Another important legal document is a durable power of attorney, which allows you to designate a person you trust to handle business as your agent if you are unable to do so. Trusts can protect assets from creditors and pass property to beneficiaries easily.  

What is a succession plan?

A succession plan is a means of ensuring your business continues after you retire from it or pass away. Partnership agreements may include a buy-sell contract. Limited liability company documents can provide for buyout terms. As a single owner of a business, you might want to train or mentor someone to take over before retiring from your practice or enterprise.

How do I handle digital assets? 

A person you trust should have access to passcodes for digitally stored business and financial data and assets, websites, and social media accounts in emergencies. Some enterprises use password security tools. Consider backing up cloud-stored data periodically on storage devices that you keep in a secure but accessible location. Consulting a business law attorney who stays current on protecting and distributing digital assets is a wise move. 

To develop an effective small business estate plan, turn to Luke A. Weiland, Attorney at Law in Wisconsin Rapids, WI. Combining skill and professionalism, this business law team keeps up with today’s digital-age estate planning. They focus on delivering wise counsel that protects your legal rights and interests. Call (715) 422-6808 to schedule a consultation or contact them online through their website.