Estate planning explained
Estate planning is something all business owners should consider. It is a process that helps you create a plan for your estate – everything from your assets and liabilities to your final wishes.
While it may seem like something only applicable to those with substantial assets, the truth is that estate planning is important for businesses of all sizes.
What is Estate Planning?
Estate planning is the process of creating a plan for your estate.
It includes everything from your assets and liabilities to your final wishes. Estate planning can be helpful for businesses of all sizes, as it can help you determine what will happen to your business after you die or become incapacitated.
When most people think of estate planning, they think of a will. However, a will is just one part of an estate plan. An estate plan can include Trusts, Powers of Attorney, and Advance Directives.
A trust is a legal arrangement in which one person (the trustee) holds property for another person (the beneficiary). Trusts can manage assets during your lifetime and after your death.
A Power of Attorney is a legal document that gives someone else the authority to make decisions on your behalf, be it financial, healthcare, or both.
An advance directive is a legal document that outlines your wishes for medical treatment or care if you are unable to communicate those wishes yourself. Advance directives can include a living will or a healthcare power of attorney.
Benefits of estate planning
There are many benefits to estate planning, including:
- Protecting your family and loved ones
- Avoiding probate
- Minimise tax liabilities
- Ensuring your wishes are carried out
Contact us to find out more about the many benefits of estate planning.
Estate planning process: Simplified into 5 steps
Creating an estate plan can be a complex process, but it doesn’t have to be overwhelming. The most important thing is to get started and to review your plan regularly. Here’s a quick overview of what you need to do:
- Gather your documents
Documents include your will, power of attorney, health care directive, and financial records.
- Make a list of your estate assets
Assets include personal assets from your home, car, bank accounts and investments.
- Determine who you want to receive your estate assets
These can be family members, friends, or charities.
- Choose an executor
An executor is the person who will carry out your wishes after you die.
- Update your beneficiary designations
These include life insurance policies and retirement accounts.
Start your estate planning process today
At Ledge, we take a holistic approach to business finance.
Partnering with experienced and certified financial planners and estate lawyers ensures we can help businesses needing estate planning services or other tax advice.
Get in touch with your Ledge Finance Executive to find out more.
Please note the information provided here is general in nature and does not constitute financial, tax or other professional advice. You should consider whether the information is appropriate for your needs and seek professional advice prior to making any decisions.