Riley Bennett Egloff Magazine January 2019 | Page 18

Planning for Business Owners.
Business owners should also be planning for business
succession when they make their estate plans. Business
succession planning addresses matters of whether family
member(s) or others, such as business partners or employees,
will own or run the business after the owner’s death. These
succession planning considerations bring their own dynamics
and challenges, which are particularly difficult when deciding
which child or children and/or other family member(s) to
involve in the future ownership and operation of a company.
Generally, the current owner(s) knows what is best for the
future of the company. A failure to put in place a succession
plan can result in significant adverse consequences for both
the business and family after the owner’s death, including
disputes, unfairness (among children, for example), loss
of value to the business, unintended tax consequences, or
even the failure of the business. A significant number of
businesses do not make it to or through a second (or later)
generation, and a failure of the current ownership to plan
will almost certainly increase that likelihood.
Advanced Directives.
Estate planning can also address the handling of your
health care and financial assets during your lifetime through
documents known as advanced directives. Advanced
directives include documents such as a power of attorney
to address financial and certain health care matters, and an
appointment of health care representative to address health
care decisions, each of which work by appointing another
person(s) of your choice to make those decisions for you
when you are not competent to do so (either temporarily
or permanently), or at any time if you so choose. Another
type of advanced directive is a living will, which expresses
your wishes as to the use or continued use of life-prolonging
measures. There are also various other directives that
express your wishes, including preferences as to cremation
versus burial or as to the standby guardian for your children.
When clients choose to have advance directives prepared,
we also recommend that they talk with any adult children
about these documents and encourage their children to also
have them prepared, especially a power of attorney and
appointment of health care representative. This is because
without these documents it may be difficult, cumbersome,
expensive or even impossible for a parent to make decisions
on behalf of an adult child in the event of his or her untimely
injury or illness, making an already difficult situation much
worse for the family.
Conclusion
The process of completing estate planning is specific to each
individual and family. It initially involves compiling a list
of your assets and liabilities and discussing your intentions
and wishes with respect to both your health and assets during
your lifetime and after death. This article provides only a
brief overview of common considerations and topics that
arise when preparing your estate plans.
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Riley Bennett Egloff LLP - January 2019