Californians who own assets should look into creating an estate plan. Estate planning can ensure that a person’s loved ones are provided for if someone passes away unexpectedly. For business owners, having an estate plan can be the difference between a company’s ability to run after an owner’s death and falling apart.
Creating a succession plan for a business
Having a succession plan for a business can account for other things besides a person’s death. A succession plan can also account for the possibility of a business owner becoming incapacitated, and it can also spell out instructions for what will happen to the business upon an owner’s retirement. In addition to a succession plan, business owners should consider key person insurance, which can name a business as a beneficiary. This type of insurance could cover business expenses if something were to happen to the owner.
Other types of insurance to protect loved ones
Whether or not you own a business, it is also worth considering life insurance and disability insurance, which can provide financial support to your beneficiaries if you die or become unable to work. Another thing to prepare for when thinking of incapacitation is medical power of attorney, which names someone to make medical decisions on someone’s behalf.
Creating the right type of estate plan for your needs
An estate plan is not necessary to pass on assets that already name someone as a beneficiary, such as certain retirement accounts. However, estate planning is a good idea for passing along personal and business assets. There are several options when it comes to estate plans, such as irrevocable and revocable trusts. Revocable trusts can be amended or added to during a trustor’s lifetime, and these trusts may be better for someone who expects there to be another birth in the family or inheritance of additional property. An estate planning attorney can help you decide what type of estate plan is right for you, your family, and your business partners.