THREAD- Estate Planning is crucial for #smallbusinessowners. Consider it part of the process of setting up a business. Include any marital agreements. #entreprenuers #entreprenuership #angel #angelinvesting. #vc #vcs #founders #prenup 1/8
Not only would giving estate planning advice on Twitter expose me to lawsuits, it would be practically futile. Business arrangements times family dynamics times changing federal & state tax laws make such public advising futile anyway. #estateplanning 2/8
But here’s what to think through before going to your lawyer. First, estimate the current valuation of the business and what any tax might be to your estate if your dropped dead right now intestate. Your heirs and your spouse? #estateplanning #prenup #prenups 3/8
Once you’ve done that math, methodically think through the relational dynamics amongst your family members. Then your business associates and employees. Lots of agendas! Then long term growth of the #business, and the growth of your family's nest egg. 4/8
After you’ve gamed out those scenarios and done THAT math, compare it to your initial number. Now comes the hard part... 5/8
Consider: What is optimal for taxes may damage your family’s bonds. What is optimal for family control of a business may destroy its long term capitalization. What is good for spousal income, may harm business relationships, and thus the very business itself. etc. 6/8
Once you’ve figured that all out yourself, you will have a much faster and *cheaper* session with a advisers. Note that the lawyer, insurance agent, and financial planner will all want to sell you their $$$$$ services. At least now you have a big picture agenda. 7/8
Lastly, explain it all to your family, and if appropriate your business associates and investors. You have saved them lots of money, and more importantly, their relationships. END. #estateplanning #taxes #estatetax #estatetaxes #LifeInsurance #FamilyLaw
PS Check List
1. Describe all who might think they're an heir.
2. Decide how all biz interests & other assets shd be handled.
3. Do math for all scenarios. Connect the right people to right stuff.
4. Pick best option based on YOUR values. Take that to your advisers. #estatelaw
1. Describe all who might think they're an heir.
2. Decide how all biz interests & other assets shd be handled.
3. Do math for all scenarios. Connect the right people to right stuff.
4. Pick best option based on YOUR values. Take that to your advisers. #estatelaw
