The present is an exciting time for you. Opening a business takes you on a new adventure with additional income and something different going on every day. However, as a new business owner with so many things competing for your time, changing your estate plan may be the last item on your list.
Making or changing your estate plan may be a complicated process. There are so many issues to think about and questions to answer, but you know you need to do it.
No estate plan
If you die without an estate plan in Michigan, the courts will decide what happens to your assets, which includes your business. Even if you have a will but do not include your business in it, nightmares and chaos may ensue for your family or business partners. Your family may lose income if they must sell your company. Your partners may not be able to settle on an agreement with what to do with the organization.
Your business in the estate plan
When adding your business to the estate plan, you decide how your family or partners handle the business. When putting together your will, remember to keep information accessible, and allow loved ones and business partners access to essential files and accounts. Document your banking and financial accounts, and make notes as to where to locate the files.
You may want to think about writing a succession plan. It helps to create a smoother transition by spelling out who takes over the various roles and duties of the business. If you do not want the family to take over, you can decide to sell it.
When deciding on an executor, you may want to consider picking someone who not only takes care of your family, but may also know the intricacies of your business. This person may know payrolls and bills and will understand how to handle the company during the probate process.