New York small business owners make important decisions on a daily basis. They decide who to hire, what products and/or services to offer to customers and even which vendors to do business with. These decisions take care of the day-to-day business; however, the prudent business owner also recognizes the need for estate planning and administration concerns to be addressed.
Most will begin addressing their estate planning needs by drafting a will. In addition to this document, some find that creating a revocable living trust is also a wise business decision. This type of trust allows business assets to be placed in the trust. The business owner can continue to manage the business in the role of the trustee; a successor trustee can also be appointed to step in if the owner becomes incapacitated or dies. The revocable living trust can allow the business to continue with little to no interruption and may even offer protection from creditors.
The small business owner may also find it beneficial to establish a power of attorney. A health care power of attorney gives another the ability to make medical decisions for the individual if it should become necessary. Additionally, a financial power of attorney gives another the ability to make financial decisions and conduct business for the individual if it should become necessary.
By addressing estate planning and administration concerns before they become necessary, the New York business owner can take the steps necessary to protect the business and its employees. The exact steps and documents needed depend upon the needs of the business and individual. Experienced legal counsel can review the situation and make recommendations regarding the appropriate tools.