Many young entrepreneurs start their businesses in their 20s or even younger. They often bootstrap their way to success, putting in long hours and making sacrifices to make their dreams a reality. However, as a young entrepreneur or small business owner in South Florida, it is important to take the time to consider Estate Planning for the future. This is especially important in a state like Florida, which has a high cost of living and a growing population.
Here are some specific reasons why young entrepreneurs in South Florida should start estate planning NOW:
- To protect your assets.
If you die without a will, your assets will be distributed according to the laws of the state, which may not be what you want. An Estate Plan can help you ensure that your assets are distributed to your loved ones in the way you want.
- To avoid probate.
Probate is the legal process of transferring your assets after you die. It can be a long and expensive process, and it can also be public. An Estate Plan can help you avoid probate, which can save your loved ones time, money, and stress.
- To provide for your family.
An Estate Plan can help you provide for your loved ones financially, even if you die unexpectedly. You can name guardians for your children, set up trusts for your minor children, and make sure that your spouse is taken care of.
- To reduce taxes.
An Estate Plan can help you reduce your estate taxes, which can save your loved ones money.
As a young entrepreneur or small business owner in South Florida, it is important that you take the time to consider Estate Planning for the future. While you may have several things on your list each day that you need to check off, you should make room to think about your business if something unexpectedly happens to you. You are likely busy hiring a team, developing goals for your small business or products, and helping customers, but it is crucial that you ensure that everything you have created and worked for will be taken care of if you are ever involved in an accident that leaves you incapacitated or even causes you to pass away unexpectedly.
Why Do Young Entrepreneurs and Small Business Owners Need an Estate Plan?
According to a survey conducted a few years ago regarding Estate Planning, around 30% of business owners stated that they have not created an estate plan, and their reasoning was that they did not feel like it was a necessity. However, it actually is a necessity that all entrepreneurs and small business owners should think about starting the process. Estate Planning ensures that all your business matters are taken care of and that all your wishes when you pass away or become disabled will be followed.
Even though many people avoid Estate Planning because it is something frightening or depressing to think about, you must protect yourself and your business against any unforeseen situations that arise. You have worked so hard to get your business to where it is, and you have likely used a lot of money, time, and resources to see your company succeed. However, if you do not develop a plan for it, all your hard work may have been for nothing.
What Does Estate Planning for Young Entrepreneurs or Small Business Owners Consist Of?
Estate Planning for young entrepreneurs and small business owners consists of sitting down with an attorney who is experienced and knowledgeable when it comes to protecting your future, your loved ones and your business. You can expect to have a long and detailed conversation about the ins and outs of what you want to happen with your business if you become incapacitated or die suddenly. While you may not want to think about not being able to run your own business, there will likely be a day that you are unable to. Your Estate Planning Lawyer will help you decide who will take over and run your business when you are no longer here or cannot physically or mentally handle it. You will want to think hard about who will possibly treat your business right and please your customers. If you have children or a business partner, this may be a no-brainer question for you.
Each of your wishes will be made in writing, ensuring that everything you mention can be found and read. In addition, your estate plan will be made simple and clear for your family members and loved ones to read, comprehend, and accept your wishes. Although Estate Planning may seem daunting at first, you will soon realize that it can give you peace of mind, knowing that you have a plan in place and do not have to worry about what may happen to your hard work if any unpredicted circumstances emerge.
4 Important Questions For South Florida Young Entrepreneurs
Regardless of whether you run your company solo, have a team of valuable members, or even have an exceptional business partner that you can depend on throughout the day, you need to plan for the transition of your company in your estate plan. Here are four important questions South Florida entrepreneurs and business owners should think about when Estate Planning:
- Who will take over your business?
This might be a business partner, family member, or even an outside buyer.
- How will your business be valued?
This will give you an idea of how much estate tax may be owed.
- What are the terms of the succession plan?
n this plan, you need to include information about how you want your business transferred, who will manage it, and how you want any disputes to be resolved.
- What do you need to do to ensure that your business remains in good financial standing and condition?
This means that you may need to set up a trust, purchase life insurance, and decide who will receive your assets.
All four of these questions are very important to ask yourself when going through the Estate Planning process. While you may have the answers and may have verbally told people your wishes, you need to make sure that you get them in writing. Hear-say does not work very well when it comes to families and coworkers fighting over your business or other assets. However, after your estate plan is in writing, it may be wise to let certain parties know what your plans and wishes are. This will ensure that they are aware and prepared, and it may reduce the chances of conflict in the future.
Do I Need to Update My Estate Plan?
Just like everyone else, young entrepreneurs and small business owners will need to update their estate plan routinely. Throughout the years, our lives and wishes frequently change. For example, you may get married, divorced, have a child, have a grandchild, or remarry. Therefore, you want to make sure that your estate plan reflects those changes and is up to date with your current life and business. In addition, laws and regulations often change, which means that you need to speak with your attorney to ensure that your estate plan aligns with any new laws that have been implemented since your last update.
Call THE South Florida Estate Planning Attorneys – The Siegel Law Group
Life comes with uncertain events and circumstances, it is always important to prepare for the worst. You should not put off protecting your business. The South Florida Estate Planning Attorneys at The Siegel Law Group, P.A. are here to help you navigate this long and complex process and will ensure that everything goes as smoothly as possible.
Call our office at 561-576-6206 to schedule a complimentary consultation or submit our online contact form to schedule a consultation today. If you have any questions, do not hesitate to contact us.