If you are a business owner in Texas or any other state, it is important to have both an estate plan and a succession plan. An estate plan helps to ensure that your personal assets are transferred to a preferred beneficiary. The succession plan ensures that the organization is run by someone you trust to continue your legacy after you retire or pass on.
What to include in an estate plan
There are many estate planning tools that you can use to meet your current and future needs such as a will or a trust. The biggest difference between a will and a trust is that the trust can take effect immediately while the will goes into effect after you die. Another key difference is that assets held in a trust are not subject to probate. Other commonly used estate planning tools include financial and medical powers of attorney.
Don’t forget about digital assets
If your company has a blog, website or other digital assets, they should be included in an estate plan. You should also be sure to leave instructions as to how you want personal social media or other online accounts to be dealt with if you become incapacitated or pass away.
What to consider when creating a succession plan
Ideally, you will determine an exit strategy the day that you decide to start your company. If you would like it to continue after you retire or pass on, it is important to identify who is best suited to operate it in your absence. In some cases, you may decide that a spouse, sibling or adult child will take over the company at some point in the future. However, you could also choose to sell it or transfer it to key employees.
If you need estate planning help, an attorney may be able to provide adequate assistance. He or she may talk more about the benefits of having a will or how to create a trust that protects your legacy while providing for your family.