One of the biggest mistakes you can make as a Georgia business owner is to not plan for what happens after your death. Your small business is probably a considerable part of your life. You put your time and money into making it successful, so it is very important to you. You may want it to be your legacy. However, if you fail to create an estate plan outlining what happens with the business after you die, it could spell the end of the company.
USA Today explains that you cannot guarantee what will happen with your business when you are no longer here to manage it unless you have a proper estate plan. Your family’s intentions may not line up with yours. You need to make sure everyone understands what you want to happen with the business. You also need to make sure they are on board.
Even if you leave your business to your family with instructions to keep it running and pass it from generation to generation, that does not mean they will be able to make that happen. They may argue over who will run the business or who will do what job. You need to leave clear instructions and communicate with your family before you die about what should happen. Create a business succession plan and make sure everyone understands who will take the reins when you are gone.
Your family may also run into financial issues upon your death. You can ensure funding for the business by using a life insurance policy as a money source, or you might set aside other money for this purpose. You will need to make sure to state your intentions in your estate plan and any related paperwork.
If you fail to plan for your business’ future, the state could step in and make the decisions for you. This is not something you want to happen if you have specific wishes for the business for your family. So, make sure your estate plan clearly outlines your wishes for the company.