Welcome back. We are here to talk more about estate planning in Cary NC for business owners. It might be confusing as an owner of a company, but our estate lawyers are here to help.
Business Owners and Estate Planning in Cary NC
If you want ownership of the business to transfer to someone else, you will need to specify if you want that person to manage it as well. If your family will take over, then you will need to specify who will manage it in order to minimize confusion.
In many family-owned businesses, some people are more involved than others, giving them a higher contribution level. You may choose to leave them a larger portion of the business because of that. However, you may want to ensure that other family members will still benefit from it so you may have to divide it accordingly.
Preparing for taxes is an important element of an estate plan for a business. You want to minimize the amount your estate will owe so that your beneficiaries do not lose out because of hefty taxes. There are tax breaks that may apply if you have a small business. Your heirs may be able to take advantage of them.
For instance, Section 6166 can give a tax deferral for small business owners if more than 35 percent of your adjusted gross income is from your business. If this applies, the executor of your estate can pay the estate tax in annual installments so that a lump sum will not have to be paid upfront.
You can learn more about tax deferral by consulting with a lawyer who can see if it would work in your situation so that you can include them as an option in your estate plan.
Stay tuned for the second part in this series on estate planning for your business.
Many people have complex financial affairs because of assets such as property or businesses that are co-owned, or because of personal situations such as blended families. If one or more of the following situations, found in our next blog post, applies to you, you may benefit from having an attorney to help with estate planning in Cary NC or draft your estate plan. Be sure to visit back with our blog, soon.
An estate planning attorney who knows about estate planning in Cary NC will be able to review your situation and provide the best solutions that will meet your needs and will also be legally sound. He or she may also suggest other things that you may not have considered before, such as creating a durable power of attorney or a healthcare directive to give guidance in situations where you may not be able to make decisions on your own anymore. There are many facets to an estate plan. Klish and Eldreth can talk with you about your situation and help guide you in creating a plan that meets your needs. Contact us, today.
If you missed previous blogs in this series, be sure to visit them, here:
- Estate Planning for Business Owners Part 1
- Estate Planning for Business Owners Part 2
- Estate Planning for Business Owners Part 3
- Estate Planning for Business Owners Part 4