Nevada business owners spend a great deal of time and effort building their companies. Some of them neglect to take into consideration what will happen to it upon their deaths. Estate planning can determine the future of the business without the individual and even provide some clarity as to what direction the business should take.
One of the first decisions that Nevada business owners will need to make is to determine whether the business will be passed on to family members. This might not be as easy a decision as it seems, especially if there are other owners to consider. If an individual does not want an heir inadvertently ending up with a seat at the owners’ table, an agreement called a “buy-sell” agreement can be executed that provides some benefit to heirs, but transfers ownership interests to the other owners upon death.
If a family member is poised to take over the business upon death, estate planning documents can help ensure that the transfer of ownership is as seamless as possible. Either of these options can help keep the business from being adversely affected by the death of one of its owners. The sooner a plan is in place, the better the chances the company has of continued growth after an owner’s death.
Exactly how estate planning can help a particular business depends on the circumstances and the goals of the owner or owners. Other benefits such as tax breaks can also be taken advantage of when planning is done early. Making a business successful and giving it longevity is often a marathon more than a sprint. Therefore, planning for as many eventualities as possible could help ensure that the company comes out on top.
Source: The Huffington Post, “5 Things Estate Planning Can Do for You and Your Business“, KC Agu, March 31, 2016