Estate planning does not always involve personal assets exclusively. Florida business owners and others with commercial enterprises may wish to address estate-related responsibilities. Otherwise, heirs and beneficiaries might struggle to figure out how to run a commercial endeavor when the proprietor passes away or becomes incapacitated.
The business side of estate planning
A business owner likely understands the depth and scope of accounts payable and receivable, and he or she might also have a good relationship with accountants, insurance agents and others. Family members and other possible beneficiaries may not have any current involvement with the business, however. Organizing things so that handing a beneficiary or agent a packet of information brings them up to speed might be worthwhile.
However, information alone has limitations. Without legal powers, authorities and directives, family members and heirs would find making any business-related decisions difficult if not impossible. For this reason, writing legally sound documents intended to transfer assets and authority is helpful.
Critical documents for business estate planning
Three vital documents that come into play during business or personal estate planning are a will, a living trust and power of attorney. A will involves transferring assets and giving someone executor power. A living trust sets up a trustee to handle decisions for beneficiaries upon the individual passing away or becoming incapacitated. Sometimes, surviving relatives aren’t capable of managing a business, but they could be granted a portion of the business’s revenue through a trust.
Power of attorney allows someone to make financial decisions on another person’s behalf. A health care power of attorney deals with medical care and related issues.
Business owners interested in discussing estate planning steps could consult with an attorney. An attorney may help with writing the proper documents based on Florida statutes.