You may have built your business from the ground up and seen it through to its current success. Given this adamant dedication to your business, it may be unfathomable to picture a time when you will not be there to manage its operations or affairs. But most unfortunately, you need to get in the mindset that you will not and cannot be around forever, and your business assets and responsibilities will have to be passed down to their rightful heirs. This is where estate planning for your business comes into play. With that being said, please continue reading to learn what business assets need to be protected in your estate plan and how an experienced Broward County estate lawyer at The Probate Lawyers can help you plan to do so.
What types of business assets do I need to protect in my estate plan?
The assets critical for the standard operations of your business may be a combination of tangible and intangible. Nonetheless, take inventory of all these assets so you do not forget to establish their protections in your estate plan. Examples of tangible and intangible assets that may be relevant to your business read as follows:
- Tangible business assets:
- The real estate property in which you conduct your business operations.
- The standard and commercial vehicles that help facilitate your business operations.
- The industrial equipment used to produce your business’s products or execute its services.
- The backstock of inventory which your business primarily sells and makes profits.
- Intangible business assets:
- The intellectual property owned and used to distinguish your business and its products and services in the market.
- The goodwill of your business, which represents its purchase prices versus the fair market value of its assets and liabilities.
- The research and development and customer data that your business has invested in over the years.
How do I protect my business assets within my estate plan?
Namely, a Last Will and Testament should be the first thing you choose to incorporate into your estate plan. Well, along with mentioning the beneficiaries of your personal assets, you should also include the beneficiaries of your business interests within this legal document. Or, in contrast, you may choose to place your business assets in a trust. In this way, these assets may be transferred to your desired heirs smoothly and without being left vulnerable to the probate process.
Lastly, as a business owner or someone with significant business interests, it may be worth adding a buy-sell agreement and a life insurance plan to your estate plan. For one, a buy-sell agreement a buy-sell agreement details the terms of a business transfer to your designated beneficiary at the time of your unfortunate death. Then, a life insurance plan may offer liquidity so that business operations continue to run normally during a transfer period.
For more information on if and when to start drafting your business estate plan, please don’t hesitate to contact a skilled Broward County estate lawyer from The Probate Lawyers. We look forward to hearing from you and later on helping you.
