- August 24, 2023
- Posted by: Carolyn
- Categories: Business plans, Business Succession, Estate Planning, How To, Small Business
THE ISSUE: You own a Small Business and have a Will, but nothing else…
Did you know that relying only on a will alone may not provide enough protection for you and your assets? This is because a will only come into effect after you pass away and cannot offer any support if you become incapacitated due to illness or accident. With just a will—or no estate plan at all – a financial guardian may be appointed by the court to take care of your assets and business until you recover.
Guardianship, like probate, involves a court process that can be both lengthy and expensive and could cause major disruptions in business operations and personal finances. A guardian could be a family member, employee, or professional hired from outside, which comes with additional expense. Having a court-appointed guardian in charge of your financial affairs can lead to conflicts and problems with your employees and family, especially if you’re away for an extended period.
THE SOLUTION: Durable Financial Power of Attorney
One estate planning vehicle that can prevent this is a durable financial power of attorney. It’s a useful way to protect yourself and your business from unforeseen events. A durable financial power of attorney allows you to appoint someone you trust, beforehand, to handle your financial affairs and run your business if you are unable to do so yourself. If you get sick or injured, this person will have the legal power to manage your business, handling tasks such as payroll, signing documents, and making decisions. This can save you time and money by avoiding the guardianship process, and more importantly, it ensures that someone you trust is looking out for your best interests. While having a trust and named trustee is the ideal scenario, a durable financial power of attorney is a great backup plan to give you peace of mind knowing that your business is in good hands.
Are you a Small or Closely Held Business Owner who wants to protect your interests and those of your heirs? I can help. Don’t hesitate to contact me today and schedule a 15-minute discovery call . Let’s get started securing your future!