While many entrepreneurs are focused on growing the business, they often neglect to consider what will happen if they are injured in an accident, suffer an illness, or suddenly die. Business owners failing to have an estate plan run the risk of undermining a lifetime of hard work, jeopardizing the livelihood of associates, and endangering the well-being of loved ones
When you die, some type of legal procedure is needed to transfer title and ownership of your financial assets to others. The law provides for several ways of doing this, but estate laws differ a little from state to state. All jurisdictions recognize wills as a means of transferring property, but not all states honor transfer-on-death methods of changing title or ownership. It's always a good idea to speak with an attorney to make sure the method you want to use is available in your state.
A basic estate plan addresses what happens to your property and your children when you die. But estate plans can go even further. They can also plan for your incapacitation, such as if you're in an accident or become ill and can no longer take care of your own affairs. Estate plans are not a single document, but a whole collection of documents that you put together to deal with a variety of circumstances.
Traditional individual retirement accounts are a good way to save for retirement. When times get tough, however, and you need some extra cash, it can be tempting to withdraw some of this money before the minimum age of 59.5.
Before you or a loved one is faced with a life limiting illness or cognitive impairment, it is important to have completed the legal paperwork necessary for estate planning.