Small business owners in Gilbert, Arizona usually have a large percentage of their net worth tied up into their businesses, which makes it even more important to consider Gilbert estate planning if you own one. Proper Gilbert estate planning can ensure that your small business’s affairs are properly managed during your lifetime and after your death.

A Gilbert small business owner will need to talk with a Gilbert estate planning professional to understand the implications of estate taxes and how to distribute their business’s assets. Gilbert estate planning for a small business can be quite complicated, as each small business has its own unique requirements for estate planning.

Proper Gilbert estate planning can reduce tax burdens and make them easier to manage. Estate taxes such as the infamous “death tax” can be a huge burden on a business that often results in businesses closing down after the owner passes away. Depending on the state, this tax is can be up to 50 percent of a business’s value and is normally due within 9 months of the business owner’s passing. However, with the proper small business Gilbert estate planning, the death tax can be broken down into installment payments so that a lump sum is not due so quickly, and other methods can be used to reduce the death tax.

A Gilbert small business owner should also strongly consider life insurance as a part of their Gilbert estate planning, as the partners in a business or family inheritors will need extra capital to deal with estate taxes, business transition costs, and other costs associated with handing down the reins of a business. There are many other aspects of Gilbert estate planning that need to be considered for a small business such as the establishment of trusts for beneficiaries, setting up the proper corporate structure, and more.

Without the proper planning your business’s financial affairs can end up being chaotic and increase your family’s stress at a difficult time. Spend the time and effort on setting up professional Gilbert estate planning for your small business and related finances to make the transition as smooth as possible, and so that there are clear directions on how to manage everything.

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If you are not sure as to what legal document you currently have contact one of our professionals to help you with your estate planning. They will make sure you have all of your grounds covered and have the right legal documents that best suite your wants and needs.

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