Estate Planning Process
Saturday, June 27th, 2009 at 8:50 pm
Business succession planning should address the continuity and transfer of tangible assets such as equipment and land. This also includes intangible assets such as people and culture. Aggressive succession planning encourages transfer of farm or business to the next generation before the death of its owners.
Estate planning is essential because it prevents liquidation of your assets to cover tax liabilities. It’s an ongoing process of expressing, designing, refining, and adopting the programs, structures, and documents needed to achieve the continuity objectives of your family business. In addition, it requires communication, refinement, and continual review of necessary plans and transfer to your vendors, key personnel, partners, and family who’ll be affected by your loss.
The process must accomplish three goals:
- *Establish plans for continuity of family assets or family business
- *Initiates transfer of assets to charities and family members prior to death
- *Upon death, completes transfer of assets with minimum administrative hassle and cost, according to your wishes
Be careful to avoid estate planning complexities that often arise out of unfocused objectives, dysfunctional relationships, and special family circumstances. To protect the rights of your beneficiaries or descendants, hire an estate planning lawyer who will be the executor of your estate.
Tags: assets, business succession, Estate Planning, estate planning lawyer, executor, family business, lawyer, tax liabilities