Protect the Future of Your Business with Estate Planning

If you own a business, planning what happens to it after you pass away is important. This is called "estate planning,” and it’s a way to make sure your assets are handled the way you want to help keep your business running smoothly.

Why Business Owners Need an Estate Plan

• Keeping Your Business Running: An estate plan helps keep your business operating without interruption by identifying successors and outlining their responsibilities.
• Minimizing Taxes: Proper planning may reduce estate, capital gains, and income taxes. You can use tools like trusts and life insurance policies to accomplish this.
• Avoiding Probate: Probate is a legal process to settle someone’s estate after they die, and it can be expensive and take a long time. Using tools like trusts can help avoid this.
• Protecting Family Interests: Estate planning ensures your family’s financial needs are taken care of and helps prevent arguments over who gets what.

Key Considerations

• Succession Planning: Decide whether to pass your business to the next generation or sell it to a third party.
• Asset Value Assessment: Figure out how much your business and other assets are worth. This helps with taxes and deciding how to divide everything up.
• Legal Agreements: Set up agreements, like a Buy-Sell Agreement, which makes it easier to transfer ownership when needed.
• Tax Planning Strategies: Work with professionals to develop tax-efficient strategies for transferring assets.
• Updates to the Estate Plan: Review your plan regularly to make sure it still fits your business, family situation, and any new tax laws.

An attorney who specializes in estate and business succession can discuss a wide range of planning options. To learn more, talk to your Federated Insurance® marketing representative for a referral from Federated’s network of independent attorneys

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This article is for general information and risk prevention only and should not be considered another other offer of insurance or legal, financial, tax, or other expert advice. The recommendations herein may help reduce, but are not guaranteed to eliminate, any or all losses. The information herein may be subject to, and is not a substitute for, any laws or regulations that may apply. This information is current as of its publication date and is subject to change. Some of the services referenced herein are provided by third parties wholly independent of Federated. Federated provides access to these services with the understanding that neither Federated nor its employees provide legal or other expert advice. All products and services not available in all states. Qualified counsel should be sought with questions specific to your circumstances. All rights reserved.