Estate planning might not be the first thing on your mind amidst a booming business and growing personal wealth, but it’s a valuable step to ensure that you protect your assets and secure your family’s future.
If you have seen an increase in your wealth, there are some tailored strategies for effective estate planning.
Understand your estate planning options
Here are a few of the most popular options for estate planning methods:
- Will: A basic will outlines who will inherit your assets, from your home to shares in your businesses, and who will take care of your children.
- Trusts: For more control over when and how your assets are distributed, consider setting up trusts. They can also help minimize estate taxes, which can be significant with larger estates.
- Power of attorney: Assign someone you trust to manage your affairs if you’re unable to do so.
Plan for the future of your businesses
Another important thing to plan for is the future of your business. If you are the sole owner of your business, this may look like succession planning. The process of succession planning involves selecting a specific person to take over your business in the event that you are not able to do so.
If you have business partners, you might want to consider an agreement that establishes how shares and responsibilities will be handled if one partner passes away.
Secure your children’s future
As you distribute your newfound income, consider setting aside funds specifically for education expenses for your children. Wherever they decide to study, the funds you set aside now can give them more opportunities later. This is especially true when you may not be around to provide ongoing financial support.
While your journey from app creator to successful business owner is exciting, securing your legacy with a robust estate plan is essential. Early and thoughtful estate planning can prevent future legal headaches and ensure that your family and businesses are well-protected, no matter what the future holds.