Why Create An Estate Plan: Tips for Small Business Owners

As an estate planning attorney, I actively encourage everyone to create an estate plan.

This recommendation to create an estate plan is for all. Readers of my blogs and articles, and those who seek my counsel need an estate plan. Anyone with significant assets such as real estate, a home, vehicle, boat, digital assets etc. needs an estate plan. We just never know what can happen in this life.

Illnesses spring up, accidents happen. We are often taken by surprise when we leave this earthly plane. As such, we leave loved ones making tough decisions. These are often decisions they wouldn’t be making if there were an estate plan with health directives in place.

For someone who has a small business, having not only a personal estate plan is important. But even more important is having an estate and succession plan for their business.

Most people start businesses to create a legacy for their families. Yet, most small business owners are frequently too busy to take care of important details. Such as stepping outside the business to think about contingencies. Preparing a plan for the business should something tragic happens often gets overlooked. Likewise, they also often don’t think about what would happen to the business if they want to transition out of it.

If you’ve watched the HBO episodic, Succession, that created such a buzz, you may understand a little better the importance of putting a plan in place sooner rather than later. Granted, in that television drama, there were multiple corporate entities in the conglomerate, but the same kind of infighting and drama occurs in small businesses when there are no clearly defined plans.

Five Strategies To Safeguard The Continued Operation Of Your Business

1.Create A Business Succession Plan

A well-designed business succession plan outlines specific steps to be taken when you retire, sell your business, or pass it on to the next generation. By having a clear plan in place, you can ensure a smooth transition while maintaining the value and continuity of your business. Consider factors such as leadership development, training, and mentoring programs to groom potential successors.

One of the primary goals of succession planning is to minimize the potential for disputes among family members or business partners. This can be achieved by establishing a clear plan for the transfer of ownership and management, including the roles and responsibilities of everyone involved in the business. A well-designed succession plan can ensure the continuity of the business and preserve the legacy of the business owner.

2.Choose The Right Successor

One of the most critical aspects of estate planning for business owners is selecting the most appropriate and suitable successor to take over your business. Whether it’s a family member, a trusted employee, or a business partner, identifying a capable individual who shares your vision and values is essential. Your succession and estate plan will outline and define in detail the process of transitioning ownership and management responsibilities to ensure a seamless transfer.

3.Protect Your Business Assets

Business assets are often the foundation of one’s wealth. To safeguard your assets, it’s crucial to establish a comprehensive plan that includes strategies such as asset protection trusts. You want to have measures in place that can shield your business assets from potential creditors, lawsuits, and other risks.

4.Minimize Estate Taxes

Estate taxes can significantly impact the value of your estate and the wealth you pass on to your heirs. By implementing tax planning strategies, you can minimize the tax burden on your estate. Explore options such as gifting assets, establishing trusts, and taking advantage of tax deductions and exemptions available for business owners.

5.Update Your Estate Plan Regularly

Finally, it’s crucial to review and update your estate plan regularly. As your business evolves, circumstances often change, and tax laws are updated. Likewise, your estate plan should adapt accordingly. You must ensure, on an ongoing basis, that your plan reflects your current goals and addresses any new challenges or opportunities.

When you’re ready to begin the process of creating an estate and succession plan for your small business, give my office a call at (470) 235-7868. Having it in place will give you peace of mind and protect your loved ones and the legacy that you’ve created.

Looking to find an experienced estate lawyer in the Georgia area who is skilled in asset protection and estate plan preparation? Shannon Pawley is an attorney in Georgia with expertise in estate planning and asset protection. Shannon can provide assistance with creating an estate plan to include making a will and how to establish a trust properly. If you have questions about asset protection or questions about making an estate plan, reach out to Shannon and she will be glad to help answer all the estate planning questions you might have!

Connect With Us

Strategy Session

Stacy McKenzie

21:58 07 Feb 24

Shannon and her team were great. Went in for a consultation and got my money worth. She explained and made sure we understood. I will be using them in the future.

Diane J

23:10 24 Jan 24

Waheed Hamid

18:55 17 Dec 23

We had excellent service from Shannon and her team, they are true professionals and helped us and explained every step in the process. We highly recommend The Estate and Asset Protection Law Firm.

Virgil Price Young

20:16 18 Jul 23

Stephanie Deal

15:22 07 Jul 23

My father and I recently used the estate, an asset protection, law, firm for new wheels, new, power of attorney’s, and a creation of a trust. Brooke and her entire team could not have been more helpful and more professional! We loved working with them, and they took everything seriously therefore I didn’t have to worry about a thing. I highly recommend everyone at the law firm.

Barry Amos

01:22 01 Jul 23

Great firm. Had answers to all our questions and explained everything clearly. Never felt rushed to make a decision Could not ask for a better experience. Every one we dealt with was professional and knowledgeable. We highly recommend this firm for estate planning.

Lee Jay

21:30 28 Jun 23

Shannon provided invaluable information regarding a family estate matter. Although her firm did not quite fit our immediate needs, the consultation was informative and extremely HELPFUL! Shannon clearly explained what our next steps should be and offered to assist if we had any questions along the way. Her expertise and willingness to help puts her in a league of her own!

Alice Guppy

02:01 23 Jan 23

Shannon and everyone at The Estate and Asset Protection Law Firm are professional, very knowledgeable, and a pleasure to work with. They answered all our questions in great detail and the plan they developed for us is exactly what we need to protect our assets and estate as we age especially with my husband's health issues.

Lynn McKibbin-Moore

23:09 24 Feb 22

My husband has dementia. This firm has been patient, kind and professional while we went through a move from a house of 37 years in to a condo to be closer to my daughter and her husband. (Miami to Atlanta). There was also a wedding. All in 6 months.We now have a trust, power of attorney. Wills for my daughter and her husband and more. All at a fair price. I could not recommend higher.

Tammy Lee

22:03 29 Jan 22

Shannon Pawley and her team are exceptional at helping families navigate tough situations. We began working with her upon finding out my father had Stage 4 kidney cancer. His decline was more rapid than expected.Attorney Pawley and her entire team expedited paperwork that allowed me to focus on my father’s care, make decisions that suddenly needed to be made for him medically and financially, and has allowed me the ability to focus more on grieving and less on legal matters upon his passing.It is obvious she is knowledgeable about the best ways to navigate estates to protect the assets for the owners and their loved ones. It is just as obvious that she is passionate and has true heart for what her clients go through.We will be using her for own estate needs, and I recommend her expertise to everybody I can.This service is worth every penny we paid as it has saved us more money and time than I could imagine.

H Jessie Brewer

18:26 18 Nov 21

Attorney Shannon Pawley and paralegal Alexis McCoy are legal professionals that my wife and I highly recommend. Their grasp of the Georgia law pertaining to Medicaid assistance and the interworking's of the State department is exceptional. Additionally, their client-attorney relationship skills are excellent. We wouldn't hesitate to use this law firm again should the need arise.

Dawn Hardy

15:06 13 Nov 21

Shannon and her team are the best! They listened to my needs and provided the best advice. They are patient and professional as well as personable, they didn't make me feel like I was just another client. Highly recommend!