For many successful entrepreneurs, the business they’ve built is not only a major financial asset, but also a defining part of their legacy. A clear, detailed estate plan can help ensure that both your business and its assets – along with personal property – are transferred to the right people and institutions efficiently and with minimal tax impact.
Ideally, though, creating an estate plan starts with your values and goals. Before diving into strategies, take time to reflect on what matters most to you. A clear vision of your legacy can guide the estate planning process and help shape the best path forward.
Don’t miss: Our guide to help ensure your business – and your legacy – are protected after you’re gone.
Questions to consider for business owners
Start by discussing these questions with your Huntington Advisor to build a plan that reflects your goals.
1. What if I had to leave my business today – without warning?
Many business owners assume they’ll exit on their own terms. But life is unpredictable – and when and how you leave your business isn’t always under your control. Even good intentions—like wanting to have your children take over—can become more complex than you anticipated.
Think about where your business is right now, and what would happen to it if you suddenly became disabled and had to stop working. These considerations can help you identify and focus on long-term priorities.
2. What could disrupt my plans and is the next generation ready?
Even with a clear vision, complications can arise. Consider: Is the next generation prepared for leadership? Are your children or other heirs prepared to inherit your wealth? If something happened to you, would they have to sell your business at a discount?
Actions you take now could make it more likely that your family or other heirs can run, or sell, the business as you want them to, but it will take advanced planning. You’ll want to take practical matters into consideration: Will extracting the money you need for life’s next adventure leave the company strapped for cash? Do you have a successor in mind? Questions like these can point you toward necessary concerns to take into account.
3. How can I protect my assets?
Your business may be vulnerable to competing interests – such as litigation, creditors, or family dynamics. For example, you may not want an extended family member involved in operations. How can you ensure your business assets are preserved for the people you care about and your goals?
This question can facilitate discussion with legal counsel about potential strategies for protecting the company from creditors, remaining tax efficient, ensuring that family members will handle wealth responsibly, and more.
4. How can I treat all family members equally?
This may reveal a lot about your family dynamics. How would you like to compensate children who participate in the business, those who choose other careers, or those who are from a previous marriage? If some in your family prove more responsible than others, does fairness mean equality?
This will be a decision that research and data can’t help with, but deep thought might. The goal is to arrive at a personal definition of fairness that your estate plan can reflect. Remember that those who carry on your business may have to face the fallout of your decisions.
5. Who should I tell about my estate plan – and when?
One of the most challenging aspects of estate planning is recognizing that you won’t be there to help your family after you’re gone. Knowing you have trusted legal, tax, and financial advisors can alleviate some concerns. They can help you make a good plan and assist your family after you’re gone by facilitating the sale of your business or working to realize a succession plan.
Most people are reluctant to talk about their finances or estate plan. Bringing in objective outsiders can help you create a workable plan and take the weight of implementation off your loved ones.
6. What will my legacy be?
Your estate plan is a powerful tool for shaping how you’re remembered. Whether through charitable giving, business continuity, or family support, your plan should reflect your values and vision. Your advisor can help you align your financial strategies with your legacy goals.
7. Who will safeguard everything I’ve built?
Choosing the right fiduciary is critical. While a loved one may seem like a natural choice, the role can be complex and demanding.
Having a professional fiduciary can alleviate the pressure and see to it that your wishes—for your business, your estate, and those you love—are honored. In conjunction with your legal counsel, your advisor can help you determine a good fiduciary for your estate and, if you wish, Huntington can provide trustee services This can help to know you have a good plan, and that it’s also going to be executed as you intended.
Start planning today
Building and running a successful business requires focus and planning, just as the preparation of passing it down does. Contact your Huntington team or find a location near you to learn more about how we can help create an estate plan that works best for you and your family.
