Many Minnesota residents achieve their dreams of starting their own businesses. This accomplishment is one that can follow them throughout their lives and even continue after their passing. As a result, it is important to remember the business when estate planning.
Business owners need to include their business-related matters in various parts of their estate plans. For instance, it is likely that a business owner will want to distribute his or her business assets to loved ones or other beneficiaries, and creating a trust can help do that effectively. The trust can put a person in charge to manage those business assets in the event that the owner becomes incapacitated or passes away. It is important to review and update trusts and other estate planning documents periodically.
It is also important to consider how the transfer of ownership will take place after an owner’s passing. If there are co-owners, a buy-sell agreement could indicate who has the rights to the decedent’s ownership shares. The buy-sell agreement can detail who should be paid for those shares, such as the owner if leaving the company or that person’s heirs in the event of the owner’s death.
Building a business takes a lot of work, and many Minnesota residents want their companies to live on long after they pass. Fortunately, estate planning can help ensure that that happens in the manner that the person wishes. Gaining information on the various planning tools that could prove especially helpful to business owners may be useful.