Kentucky business owners are among the many people who should look into creating an estate plan if they have not done so already. An estate plan – specifically, a document known as a succession plan that is contained within an estate plan – can be used to detail what will happen to a business if the owner dies or becomes incapacitated. This plan could be to sell the business, sell ownership in the business to other business partners, close the business, or pass the business on to a family member or friend.
If a business owner wants a business to continue running in his or her absence, it may be a good idea to get key person insurance that names the business as a beneficiary. Key person insurance can provide for business expenses in the event that someone else needs to take over the business.
Business owners and non-business owners alike should consider including a power of attorney in their estate plan. Power of attorney can be given to another person for financial and/or medical decisions if the person who created the power of attorney becomes incapacitated. Individuals may also want to include an advance healthcare directive stating whether they want doctors to take certain life-sustaining measures if they are in a near-death situation.
People with dependents can also explore possible disability and life insurance plans. These types of insurance pay out if a person is unable to work because of a disability or if a person passes away.
When creating an estate plan, people should determine whether a last will and testament will be sufficient to name heirs to receive their assets or whether a trust fund would be better. Trust funds can allow for more creativity and can help beneficiaries avoid probate, which can take time and cost money. An estate planning attorney can help individuals explore their different options.