Business owners, in a recent study, were identified to be more likely to have a wealth transfer plan than their employees, but nearly half of them do not even have a will.
RBC Wealth Management indicates that 39% of business owners do have a full transfer plan for someone to step in and take over the future of the business, but more than 49% have not even put together the most basic estate planning documents in a will. Nearly 400 business owners throughout Canada, the UK and the US were surveyed with an average net worth of $6.4 million.
One bright spot of the survey’s results indicated that business owners are now educating their children about the benefits of estate planning and finances at a younger age. On average, they begin talking about financial decisions when the children turn 25, but 28% of the younger business owners intend to start even sooner when those children reach age 18. Your business is probably one of the most important assets you own, and being able to plan for It successfully can be critical for your future.
Consulting with a knowledgeable business succession planning attorney and an estate planning attorney is important if you do have assets tied up in a business.
