Family-owned businesses collectively create about half of US jobs and make up about 40 percent of the US economy. While family-owned businesses collectively form an economic leviathan, each small business and its owner face distinct needs and circumstances. Some may grow into multi-million-dollar enterprises, while others remain small but reliable. In both cases, and everything in between, small business owners need an estate plan to make sure that the wealth they fought so hard to build does not get lost after death.
Small business owners are savvy. They often know enough to incorporate and to hire a tax professional to help them comply with their tax obligations. Yet many business owners don’t consider the importance of estate planning or when they should work with an attorney to create an estate plan.
For an unmarried entrepreneur with no children and a new business, estate planning could be simple and may, if circumstances warrant, involve only the preparation of a will. But simple does not necessarily mean easy, and even in these “simple” cases it is still prudent to contact a Miami estate planning attorney to make sure that one’s will meets Florida’s legal requirements for a valid will.
Family changes bring more complexity and are a good time to revisit one’s estate plan. For instance, you might not want to leave everything to a now-former partner, or you may want to explicitly provide for a new partner or child. Marriage, divorce, or the birth of a child are good times to revisit your estate planning to make sure it still meets your goals.
Economic changes may mean it’s time to break out the big guns. As your business grows in success and wealth, it becomes increasingly important to meet with an attorney to ensure that your business is properly addressed in your estate planning, and that you are addressing any potential estate tax considerations that may arise.
A thriving business can generate considerable wealth, which may trigger estate tax liability, or “death taxes” as they are frequently called. As one’s business becomes more successful the potential tax implications of inheritance can also become greater, and so it is important to undertake estate tax planning to ensure that your hard-earned wealth is taxed to the least degree possible upon your death.
Careful estate planning could also keep your wealth, or your business, from going through probate court in the event of your death, meaning your family could avoid unnecessary court costs, attorney fees, and unneeded stress.
In short: estate planning is important and small-business owners should hire an attorney to help them create and manage an estate plan that protects what they’ve built and honors what they value. The Miami estate planning attorneys at Chepenik Trushin LLP are ready, willing, and able to assist you with all of your estate planning needs. Please give us a call today at 305-981-8889 to discuss how to best protect your small business and wealth.