Many Americans are beginning to realize the importance of early financial planning because of economic volatility and rising costs for health care, food, and other living expenses. However, planning for the future involves more than just preparing for the immediate future or even retirement. Proper financial and estate planning involves developing a clear and concise plan for asset allocation and inheritance distribution in the event of death, especially for individuals who own their own business or are partners or key shareholders in a company. A previous blog post emphasized the importance of creating a Will or Trust for individuals and families, while this post will focus on the benefits of Wills and Trust for company owners and partners.
Establishing a Will or Trust in advance offers several significant benefits for both the family members and associates of the deceased. First, creating a Will or Trust as part of an estate plan affords family members peace of mind and financial protection with regard to the company's future. When a company owner or business partner passes away suddenly or without any instructions for the division of their estate, it can force relatives to make hasty and often unwise financial decisions for the sake of the business or surviving family members. Surviving relatives may be pressured to sell their business or company shares for far less than the actual net worth in order to pay off other personal debts or because of inexperience or inability to run the business on their own.
Secondly, establishing a concise and thorough Will or Trust ensures the long-term stability of a privately owned company or business partnership even after the death of an owner or business partner. When majority shareholders or business owners begin proper estate planning in advance, this can help stabilize the company and protect future growth and revenue in the loss of an owner or key member and their skill set. A Will or Trust can also reduce the likelihood of legal action between the remaining business partners and the surviving family in determining proper division of assets or true company ownership.
Finally, company owners or business partners can utilize Wills or Trusts to help establish charitable donations upon or before death to specific recipients such as non-profit groups, religious institutions, alma maters and other beneficiaries. For company owners and business partners determined to give back to their local communities, wills and trusts help ensure earmarked contributions are distributed to the designated recipients.
Christiansen Law Firm is committed providing Texans with the legal expertise they need in creating Wills and Trusts that protect both their surviving relatives as well as their company and business partners. The experienced and friendly attorneys of Christiansen Law Firm can assist with simple or complex estates that best secure assets and ensure proper asset distribution. Estate planning is an important and significant decision, so it is best to have Christiansen Law Firm's team of skilled attorneys on your side to ensure the security and future of your assets. Contact Christiansen Law Firm for a free consultation today.