The Top Four Estate Planning Mistakes Small Business Owners In Massachusetts Must Avoid

Small businesses make enormous contributions to our community. The Greater Boston Chamber of Commerce reports that there are more 700,000 small businesses in Massachusetts. If you are a small business owner, it is imperative that you have a comprehensive estate plan in place. At Fisher Law LLC, we help small business owners protect their family and their company. Here, our Boston estate planning attorney highlights four all-too-common mistakes that small business owners in Massachusetts should be sure to avoid.

Mistake #1: Failing to Set Up a Business Continuity Plan

 Are you heavily involved in the day-to-day operations of your company? You need a plan to ensure that things can continue even if you are not around. Too many small business owners in Massachusetts overlook the necessity of a business continuity plan. A business continuity plan ensures that your business can operate smoothly without your direct oversight due to illness, incapacity, or death. Without this plan, your business may face major operational disruptions.

Mistake #2: Assuming Your Children or Other Family Will Take Over Business

 You may want to pass down your business to your family. That is often a great option—but it is not the choice for every business. Presuming family members will automatically want to take over your business can lead to big problems. Interests and aspirations differ—and without clear and well- communicated plans and training—the transition can result in a serious conflict. Make sure you and your kids (or other family members) are on the same page.

Mistake #3: Not Developing a (Funded) Business Succession Plan

 A common pitfall for small business owners is not having a detailed and fully-funded succession plan. Such a plan not only outlines who will take over the business but also includes funding mechanisms such as life insurance or saved profits to facilitate the transition. It is a form of financial preparation that ensures that the successor has the necessary resources to sustain the business during and after the transition.

Mistake #4: Waiting Too Long to Seek Professional Guidance and Support

 With small business estate planning in Massachusetts, a proactive approach is best. You do not have to navigate the process alone. A Boston estate planning attorney who has experience working with business owners can help you develop the right plan for you, your company, and your family. The sooner you set up a plan, the better. Procrastination might lead to missed opportunities for strategic planning and could even complicate things in the future.

Set Up a Confidential Consultation With a Top-Tier Boston Estate Planning Lawyer 

At Fisher Law LLC, our Massachusetts estate planning attorney has the skills and experience to represent small business owners. If you have any questions about estate planning as a small business owner, please do not hesitate to contact our estate planning firm today for a consultation. We provide estate planning services to small businesses throughout the Greater Boston area, including in Suffolk County, Norfolk County, and Middlesex County.

Source:

bostonchamber.com/networks/small-business/