If you are a small business owner, your estate plan becomes incredibly important because not only does it provide for your family but also your business. You need much more than just a will that outlines what you want. You will need a range of documents and tools to ensure that your business can survive after your death.
USA Today explains you will need to have a plan for the business after your death. This means knowing who will take over running the business and having finances in place to help keep things running until the new owner can take over. You should discuss your wishes with your family and put in place a business succession plan. You also may want life insurance that will help pay family expenses until the business is running properly again.
It is also important to understand that estate planning is not just about what happens after you die. It also can help prepare for what happens if you suffer an illness or injury that makes you unable to make your own decisions. For this reason, you will also want your estate plan to include health care directives and a power of attorney. You may want multiple powers of attorney to give different people the ability to make different decisions on your behalf, such as one for medical and one for financial. Disability insurance is another good tool that can provide financial help to your family and your business if needed.
It is important that you make your wishes known so that everyone will be ready to take action upon your death. Your business could easily die with you if you fail to plan and make use of the proper tools.