Many entrepreneurs know that keeping enough cash assets in the business and having the right insurance is necessary in protecting the business itself, employees and family members. If the owner does not have the right personal planning documents in place, then the business may still suffer dire consequences at the owner’s death.
Step one is making sure you have a financial power of attorney (FPOA). This allows you to transfer authority to your agent who can make and execute financial decisions for you should you become incapacitated. This includes business operations, tax preparations and many other necessary tasks to ensure your business continues to operate smoothly.
The second step is having an updated Last Will and Testament. This should provide instructions for business succession, asset distribution and key management/operations decisions. To avoid probate, having the assets in a trust may make the transition easier.
For more information on business succession planning and preparing the documents you need to protect your business in the event of your incapacity or death, please contact Stouffer Legal at 443-470-3599 in the Greater Baltimore area.