The Small Issues Which Business Owners Need To Know About!
When working with business owners, it is important to communicate many of the overlooked issues which may blindside them and cause disaster in their financial future.
Small issues turn into major problems bringing with them costly consequences. Many of them are obvious, and can be game changers in your future.
Whether you are an advisor or a business owner, some of the ideas I put forth will help you communicate these overlooked issues.
I am sure if you asked 10 people to describe what estate planning is in one sentence, you would get 10 different answers.
At one time most advisors and business owners would suggest that estate planning is about reducing taxes. However, I would disagree that estate planning is just about paying death taxes and mitigating estate costs.
To me, estate planning consists of three phases, creation, preservation, and distribution. Each of the phases is distinct in and of themselves.
Creation is the concept of money, and accumulating. Implementing strategies, which allow estate owners to create wealth, and avoid losing wealth by making financial mistakes.
Preservation is about protecting what you have from, inflation, lawsuits, expenses, and taxes.
Distribution is the orderly distribution to your heirs. It also is a phase where the estate owner can distribute wealth to certain beneficiaries, at the least cost possible.
DORIS DAY: THE EXAMPLE
Doris Day’s husband died in his 60’s. He had taken care of all the financial areas of their life. After his death, Doris Day did not know what she had, or what she owed. The net result was she ended up owing a fortune to the IRS, in income and estate taxes.
Business owners not only have needs as business owners, but also have needs as individuals. Consequently, it’s not only the business planning that needs attention, but also a coordination of their personal situation. In many situations, the owner’s planning is more complex because of the business ownership.
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