Posted on 29/10/2017
Small Business & Retiring
As you are going through your estate planning, are you or your love one a small business owner/investor?
Now is a great time to start planning for what happens in the future. Before something happens and you have to rush through everything.
Before you bring your professional team in, do a little homework first to see how the business is structured. There are many different ways a business can be structured. Most owners start as a DBA –Doing Business As, usually it’s in their personal name. The intention is ‘one day’ to get everything structured properly but life happens and before you know it, twenty, thirty years have passed and now you have to figure out what to do now that you or your love one needs to step back from the business.
This is not my area of expertise but these are questions that would be going through my mind or questions I would ask my love one if they were in this situation. Contact your professional team to get their expert advice and options.
Here are a few questions that come to mind:
- Are you ready to retire?
- Are any of the kids interested in taking over?
- Is the business still relevant in today’s market?
- Are you looking to sell the company or shares?
- If you have a real estate portfolio, what are your expectations? Are you going to sell some, keep some, buy more?
- If for whatever reason something happens and you can no long make decisions for yourself/business, what do you want to happen?
The last question is there because when there is an emergency and the medical staff is not expecting a person to pull through, decisions need to be made regarding the business.
What happens if you beat the odds and survive?
There needs to be a plan in place to have the business still able to function and have the right decisions being made. Not the wrong one because everything happened at the same time and everyone rushed to make decision that was not well thought out.