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Whether you're a seasoned professional and ambitious entrepreneur, or simply someone seeking guidance, we'll have you covered from navigating the legal landscape to empowering. You, with valuable business strategies, we'll explore the legal side of life and enjoy a virtual latte along the way. So, grab your favorite [00:01:00] latte, get comfortable, and let's dive into Law Days and Lattes.

Welcome back to Law Days and Lattes, where we break down the legal side of life. Life over a cup of coffee. I'm Sidney Wheelan, your host and founder of the Wheelan Law Firm of Moberly, Missouri, your go to source for legal issues facing your family and your businesses.

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decide what happens next. Before we dive in, here's a reminder. Estate planning is not a do it yourself project. You NEED an attorney. An accountant and potentially other professionals to ensure that everything is structured correctly for your business and your financial situation. So, grab your latte and let's get into it.

What happens if you don't have an estate plan for your business? Many business owners assume their family will figure things out if something happens to them. Unfortunately, that's rarely the case. Let's take the story of Lisa, for instance. A small business owner who built a thriving salon over 15 years.

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Her business went through a long probate process leading to delays, disputes, and financial loss. So the lesson, if you own a business, you need an estate plan that outlines who inherits, who takes over the operations, and how the transition is to happen smoothly. Next, let's talk about the key planning documents for business owners.

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I've had two clients come in to me this week alone with wills that were left by their loved ones that did not comply with Missouri's laws regarding the proper execution and witnessing of wills and the sad result? These wills will not be admitted to probate, and the state's laws on intestate succession will control the distribution of the assets, not the wishes of the loved ones that tried unsuccessfully to write their own wills.

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For an example, let's take a business that did survive. Unlike Lisa's business, Sarah was a bakery owner. She had a trust. When she passed unexpectedly, her trust transferred ownership smoothly to her daughter, per her wishes. The business remained open. Employees kept their jobs, and Sarah's legacy lived on.

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If you become incapacitated, who makes business decisions? A power of attorney appoints someone to manage your finances and your business operations. Here's another real world example. A retail store owner had a stroke and was in a coma for months. Without a power of attorney, his family couldn't access the bank accounts or pay his employees.

His business suffered while the courts took months to grant someone legal authority to run the business. So the solution, a financial durable power of attorney ensures that someone you trust can run your business. If an emergency happens. Let's talk about business succession planning. Who will run your business when you're gone?

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The farm and all of its assets were ultimately liquidated. The lesson here, a succession plan prevents family disputes and ensures that there is a clear transition of leadership and ownership. So, what things should a succession plan include? Who will take over the operations? A family member? A business partner?

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Smart planning, though, can reduce or eliminate this burden. Let's talk about the next case study. A successful entrepreneur left his business to his children. But they faced a huge tax bill that they couldn't afford. To pay for it, they were forced to sell the business. So, if your business is large enough to trigger estate taxes upon your death, planning strategies like gifting, Life insurance and trust can help reduce the tax burdens and keep your business intact.

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Again, this is a discussion for the professionals, so talk with your attorney or your accountant for more detailed information about your specific situation. So, Next step, take action. This is your estate planning checklist. Meet with an estate planning attorney. This is not a do it yourself project. Draft or update your will to include your business assets.

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And one final thought, estate planning is not just about debt, it's about protection. If you're an entrepreneur, estate planning is not optional, it's essential. It protects your family's financial future, your business operations. And, your employees and customers. Don't leave your hard work to chance. Meet with an estate planning attorney, a financial advisor, and an accountant to create a solid plan that secures your legacy.

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And if you have questions, send them my way. I'd love to answer them in future episodes. Until next time, my friends, stay fearless. Stay prepared and keep building your empire.

This podcast episode contains general information for discussion purposes only. Each case is different and must be judged on its own merits. Missouri rules generally prohibit lawyers from advertising that they specialize in particular areas of the law. This show should not be construed to suggest such specialization.

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