As if business owners didn’t have enough to contend in managing their business and personal finances, there is one particular aspect of their financial lives that is often neglected until it’s too late, and that is the management of their estate. Yet, it is the one area of their financial picture that, if not thoroughly planned and managed, could have the most devastating consequences for their family and their business.
After spending their lives building a successful business, it’s not at all uncommon for the value of the business to comprise the vast majority of a business owner’s estate. Many business owners would like to see their business remain in the family after their death, or, at the very least, have their family be able to benefit financially if the business is to be sold. Without a well-conceived estate plan, with full consideration of the business as an estate asset, there is a high likelihood that the business will not survive an estate liquidation to cover settlement costs and taxes.