A recent study conducted by RBC Wealth Management identified that even though nearly 40% of American business owners have a complete transfer plan, nearly half of them have not taken the necessary steps to make a will. Even though business owners are more likely to have a wealth transfer plan than their employees with half of them not even having a will, this is an important opportunity to review your individual goals as well as those for your business.
A total of 384 business owners were pulled to complete the study. The average net worth of those who participated was $6.4 million and the study also identified a correlation between the likelihood of being prepared and the level of wealth. Nearly 60% of those families with more than $10 million in liquid assets had completed a full plan, but those with less than $1 million had much lower numbers at 19%. There is a lot of delicacy and difficulty associated with the topic of succession planning which is why many business owners put it off until it is too late.
Bear in mind, however, that a significant change in your business could occur at any time due to incapacity, divorce, or death and so it is essential to take these planning steps now.
Anyone who owns a business should consider the benefits of estate planning as well as asset protection planning. You’ve spent a lot of time working towards your individual goals as well as your company goals. Don’t hesitate to get help from an experienced estate planning law team.