Business owners need to take extra precautions to safeguard their assets. Illinois entrepreneurs must be most mindful in their estate planning documents to take steps to ensure the protection of their businesses when they are no longer at the helm. Many business owners are so focused on running their businesses that they forget to take the time to draft important documents such as wills, financial powers of attorney or living trusts.
When there is a need to transfer the financial authority of a business to another person, a financial power of attorney is needed. A business owner never knows when he or she will no longer be able to make essential decisions. The person acting in this capacity can do things like pay bills and make any other pertinent financial arrangements for the business.
If a business owner dies unexpectedly, it may leave his or her business open to all kinds of negatives. Having a living trust in place deflects many of those issues. Property that is in a trust will not have to go through the probate process. The court won’t have to get involved and issues will remain private. Last but not least, a will is also necessary since it can outline the testator’s wishes for his or her business as well as decisions regarding other assets.
An Illinois estate planning attorney can help a client draft these essential documents and also help develop a plan to avoid or to mitigate estate taxes. He or she will also work to ensure his or client’s life savings remain safe from beneficiaries’ creditors. An attorney can also arrange for someone to handle a client’s affairs should the client ever become mentally unable to make his or her own decisions.