Estate Planning for Business Owners - financepal

Estate Planning for Business Owners

August 3rd, 2021

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In the post-pandemic future, we plan on an eventual return to the “new” normal. This new normal will change the ways lawyers interact with clients, probate wills, execute documents, and administer estates and trusts. It will also change the game regarding planning your estate and protecting your assets as a business owner.

Protecting Your Business After Covid-19

As the pandemic begins to fizzle out and return-to-work guidelines are put into place, you must consider how you can protect your business assets from post-pandemic liability. As is best practice, follow OSHA’s requirements for small business owners to the letter and implement ways of tracking COVID-19 outbreaks among your employees.

Watch the Workspace + JUSTLAW webinar to learn more:

Post-Pandemic Estate Planning

For business owners, planning your estate is a critical asset protection maneuver. Estate planning entails much more than wills and trusts; effective estate plans provide essential provisions that allow trusted associates to manage your business in the event of incapacitation or death. Put simply, a proper estate plan is the key to protecting a business across generations.

In a post-pandemic world, your estate plan should include:

  • Will and Trust: The will and trust form the most crucial part of a proper estate plan. A will can ensure that your assets are distributed according to your wishes upon your death, and a trust can protect your assets from the brunt of estate taxes or legal battles.
  • Durable Power of Attorney: Drafting a Power of Attorney (POA) ensures that you can choose who will take charge in executing your will should you become incapable of doing so. If your estate plan doesn’t include a POA, the court will choose somebody on your behalf—and they may not share your vision for your estate.
  • Healthcare Power of Attorney: Commonly abbreviated as HCPA, this typically puts a spouse or family member in charge of all healthcare-related decisions on your behalf. Usually, an HCPA is invoked if you ever become incapacitated.
  • Beneficiary Designations: Designating a beneficiary will allow someone to be put in charge of your assets and possessions that are not dictated in your will. Named beneficiaries must be older than 21 years of age—and must be deemed mentally competent.
  • Guardianship Designations: If you have young children or are planning on having children in the future, designating a guardian is essential when planning your estate. In the event of your death or incapacitation, your designated guardian will raise your children in your stead. It is essential to appoint a guardian who you feel comfortable with raising your children. If no guardian is named, the courts will decide who obtains guardianship.

About the Author

Jacob Dayan, Esq.

Jacob Dayan is a true Chicagoan, born and raised in the Windy City. After starting his career as a financial analyst in New York City, Jacob returned to Chicago and co-founded FinancePal in 2015. He graduated Magna Cum Laude from Mitchell Hamline School of Law, and is a licensed attorney in Illinois.

Jacob has crafted articles covering a variety of tax and finance topics, including resolution strategy, financial planning, and more. He has been featured in an array of publications, including Accounting Web, Yahoo, and Business2Community.

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About the Author

Nick Charveron, EA

Nick Charveron is a licensed tax practitioner, Co-Founder & Partner of Community Tax, LLC. His Enrolled Agent designation is the highest tax credential offered by the U.S Department of Treasury, providing unrestricted practice rights before the IRS.

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About the Author

Jason Gabbard, Founder and CEO of JUSTLAW

Jason Gabbard is a lawyer and the founder of JUSTLAW.

About the Author

Andrew Jordan, Chief Operations Officer at FinancePal

Andrew is an experienced CPA and has extensive executive leadership experience.

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