You know that it’s smart to make an estate plan as a new business owner. Perhaps you’re also a parent or you have significant financial assets. You need some plan to pass these on to your heirs.
What you decide to do is simply to write a will. This way, you can leave instructions for your heirs pertaining to who is supposed to inherit which assets. But is that actually enough?
You may want to use other tools as well
A will is definitely an important estate planning tool, and it is a good place for you to begin if you have no plan in place so far. It is much better than not leaving anything behind for your heirs, which can lead to confusion and estate disputes, among other issues.
But you may want to consider other tools that you can use as part of your estate plan, as well. For instance, you may need a business succession plan for the company itself. You may want to use a medical power of attorney to decide who gets to make medical choices for you in the future. You may also want to use a legal or financial power of attorney, especially if someone may need to handle your business affairs. On top of all of that, you may consider using a trust if you would like to leave financial assets to your heirs but still retain some control over how those assets are used.
Making a complete plan
Even the tools listed above are just the beginning of what you may want to use, but you can see how many options there are. Be sure to consider them carefully as you attempt to make a complete estate plan.