15 Jun Estate Planning for Family Business Owners
Even though Estate Planning is beneficial to all, if you are a business owner, it is even more important that you begin estate planning if you haven’t already. Estate planning can be especially critical for small or family business owners because it is likely that the majority of the family’s wealth, assets and income sources, are tied up in the business.
Estate Planning My Business
It is important to remember that the success of your estate plan is dependent upon the business being transitioned to the next generation or sold to someone outside of the family at a fair price. Keeping the business in the family and treating all children fairly, may take considerable precedence over tax issues in the owner’s mind. Either result takes much preparation and planning.
Among personal factors that need to be considered when developing an estate plan, are the age and health of the owner, the number of assets, the amount of debt, and his or her retirement plans. Also relevant are income needs, the age of any children, and the degree to which spouses or other family members may be involved with the business.
What also needs to be addressed is the current stage of the business itself. Is your business a start up? Is it well established within the community? Are you expanding?
But most importantly, what is the level of dependency the business has on the owner?
Estate Planning for Owner Dependent Businesses
Many businesses are started and run by one individual and then close when the founder retires or dies. We see this often with Doctors, Dentists, Lawyers, Local Restaurant Owners, etc.
If you are running an owner- dependent business, the fact that the business will end pending the your retirement or death, does not mean the business should ignore Estate Planning. During the years the business is in existence, steps must be taken to minimize the risk of liability arising during business activity.
It is also important to note, that with the proper planning and right investments, most businesses can become multi generational. As the owner of a small business, you should investigate all options and choose the model that best fits your personality, business plan, and estate planning goals.
Kemp Financial Group Estate Planning
At Kemp Financial Group we provide sound financial advice and expert financial services, that will help grow, protect and transit
With over 100+ years of combined experience within the family, we understand that Canada’s economy is dependent on the health and wealth of our client’s and communities.
Let Our Family Take Care of Yours.