Estate planning for business owners
The importance of proper estate and succession planning.
Business trust advantages
Another option that business owners should consider is having their business interests held in a revocable trust. For legal purposes, a revocable trust is considered a “nonentity” during the owner’s lifetime, which means they can have full access to their business interests as well as amend or revoke the trust as they see fit.
But by putting business interests in a revocable trust, they become nonprobate assets, which means neither the business assets nor the proceeds from a buy and sell agreement will be subject to a lengthy, public and potentially expensive probate proceeding.
This is a brief overview of several common situations a business owner may encounter and strategies they can use in their estate planning. But a truly comprehensive estate plan can be much more complex.
An Edelman Financial Engines planner can help you consider your entire financial picture and advise you with the support of our team of experts to help ensure that your business assets are transferred in accordance with your wishes – and in a tax-efficient way.
Edelman Financial Engines estate planning specialists cannot provide guidance on service-related items, help with account paperwork or give guidance on custodian processes.