Business owners in Minnesota should look into how to incorporate their business plans into their estate plan. An estate plan can include a will or a trust fund, and it can also include a succession plan for a business and powers of attorney. Before meeting with a professional to discuss estate planning, it can be helpful to familiarize oneself with the documents that can comprise an estate plan.
When looking into estate planning, it is good to think about insurance that people may want to get to protect their families or their business partners. Key person insurance for business owners can provide coverage for business expenses if the business is named as a beneficiary. Individuals should also consider whether they want to get life or disability insurance in case they unexpectedly pass away or become incapacitated.
An estate plan can include a last will and testament, which dictates how a person’s assets will be passed on to others. Wills need to go through probate court before any assets can be distributed, and that process can take some time and cost money. Certain types of trust funds, on the other hand, can avoid probate. For both wills and trust funds, people should think about who they want to have be in charge of handling them after their death, and they should speak with that person before drafting an estate plan.
There are a few things that do not get covered in an estate plan, like retirement accounts that name someone as a beneficiary. It is a good idea to compile documents reflecting the beneficiaries of any such accounts to bring to a meeting with an estate planning attorney, and it is also good to keep these documents together with the estate plan, for ease of administration and to avoid confusion.
