When going through the estate planning process, one tends to focus purely on protecting personal assets and loved ones. However, for entrepreneurs in Massachusetts and elsewhere, asset protection for one's business is equally important. After all, how business affairs are handled in the event of one's incapacitation or death will affect one's personal or family situation as well.
Failing to have an estate plan that includes protections for one's business will affect a lot of people and undermines the hard work taken to build the company. There are several different legal documents, beyond wills, that can be included in an estate plan in order to ensure this does not happen. These might include a buy/sell agreement and a succession plan -- among others.
A buy/sell agreement is especially important for those who share ownership of their companies. This type of document works to redistribute owner interest in the event of incapacitation or death. A succession plan, on the other hand, can be written to provide instructions as to who a business will be passed on to and how that is to occur.
Estate planning can cover both personal and professional aspects of one's life. Failing to protect the professional side along with the personal side will have long-lasting consequences for oneself, employees, partners and loved ones. Those in Massachusetts who are in need of personal and professional asset protection can seek assistance from an experienced estate planning attorney. In obtaining help, one can ensure his or her final wishes for his or her business and personal matters are clearly documented, and that all the necessary legal documents to provide the desired protections have been completed.
Source: business.com, "5 Estate Planning Tips for Entrepreneurs", Fred Cohen, Nov. 8, 2016