Family & Estate Planning
As an entrepreneur, you have a business that probably accounts for a large portion of your net worth and represents the primary source of income that supports your family. So, understanding how your enterprise will be valued is of critical importance to your family & estate planning. Without proper succession and estate planning, the business you’ve worked so hard to build could be in jeopardy when you can no longer be present.
The federal government levies an estate tax, which must come out of your estate before your beneficiaries receive their inheritance. But some states also charge their own estate and inheritance taxes. Inheritance taxes are a little different from estate taxes, because they don’t just come out of the estate. The people who inherit the business have to directly pay the inheritance taxes. Fortunately, there are a variety of ways you can minimize estate/inheritance taxes through comprehensive estate planning.
Therefore, estate planning is important for people of all ages because it addresses financial, personal and health care decisions that have cross-generational implications for quality of life. An effective estate plan ensures that personal wishes are honored and it should evolve with major family events – such as marriages/divorces, births and deaths. A well-drafted estate plan will save your heirs taxes, court & attorney costs as well as simplify financial matters for those left behind.