Articles Tagged with estateplanning

Two types of planning that business owners often overlook are estate planning and succession planning. While the two are often lumped together—and in some cases overlap—they are separate processes with their own goals.

Here, we’ll look at how estate and succession planning differ.

Estate Planning

When high-level personnel and executives leave your company, it leaves a gap that needs to be filled. To make sure your organization fills those gaps without disrupting your processes, you’ll need a succession plan.

What Is a Succession Plan?

A succession plan is a strategy for making sure key positions are filled when skilled, experienced, or otherwise crucial people leave your organization or otherwise leave positions vacant. It identifies ways to prepare people to fill the gaps left behind.

Succession planning is the process of passing on the leadership of a company to others. Often, it involves training employees internally or recruiting qualified individuals from outside the organization.

Definition of Succession Planning

No one is guaranteed to stay with any given company forever. A business’s current executive leaders and owners may retire, move on to other opportunities, or pass away, leaving a void that needs to be filled.

Asset protection for business owners can be complex, especially when business activities may put personal property at risk. Fortunately, there are many strategies business owners can use to protect personal and business property.

Advantages and Drawbacks of an LLC

One of the most effective asset protection strategies is the limited liability company. LLCs separate the owners’ personal assets from those owned by the business, so if the company comes under fire, the owners’ personal belongings are kept safe from seizure.

Farmers tend to be cash poor and asset rich. The worth of your farmland and related assets may exceed estate tax exemption amounts, leading to a hefty tax being assessed on your property once you pass on. Additional complications may further drive up expenses. Often, families find themselves selling land—or even the farm as a whole—to generate cash to cover these expenses.

Preventing that from happening is a key part of your estate plan.

Estate Taxes

When planning out how your estate should be handled after you pass on, it’s important to make sure your plans are put together in the most effective, efficient way possible. Estate plans have many moving parts, and the strategies you incorporate into your plan will depend greatly on the nature of your property and assets.

An estate planning lawyer helps with every part of your estate planning process.

Designing Your Overall Estate Plan

Real estate investors may at times find themselves looking at properties that meet their requirements in all but one aspect—zoning. The zoning laws that apply to a given piece of property can restrict what you do with it, and it may be tempting to try to rezone it.

Here, we’ll go over the factors to consider before trying to rezone a property.

The Rezoning Process – Factors to Consider

For most businesses, taxes are a burdensome expense. Business tax credits are a way to reduce the total dollar amount of taxes your organization pays each year.

Definition of Business Tax Credits

Put simply, tax credits are reductions to the actual dollar amount of taxes owed. They are offered by the government as an incentive for businesses to invest in things that improve society, such as research and development, using green energy, providing for employees’ needs, and so on.

Insurance can be expensive, and when you need to file a claim, you might find your business at the mercy of your insurance provider. The issues your business might have with insurance could be mitigated by creating a captive insurance company.

What Is Captive Insurance?

Captive insurance is a subsidiary company completely owned by your business and that provides risk mitigation services. In other words, your business creates and owns the company, and that company provides insurance coverage more or less on your terms.

Cryptocurrency and the IRS

As Bitcoin, Ethereum, Zcash, and other forms of virtual currencies become more and more prevalent, many people have begun facing the tax implications of their trading, buying, and selling activities on the blockchain. Numerous individuals have accumulated a great deal of wealth thanks to this new technology, and the IRS has taken notice.

As the technology and the usage thereof develop, so too will the codes and rules set forth by the IRS over how this type of income should be reported and taxed. When it comes to planning for the tax implications of buying and selling cryptocurrencies, making an ICO, or engaging in other business transactions involving blockchain technology, you need an attorney who is both experienced in tax law as well as up-to-date on the latest developments.

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