Generally, when an entrepreneur is starting a new business, one of their big hopes is that their business will be a big success. When this hope is realized, one thing it can be important for a business owner to give careful thought to is the future. This includes what will happen after they are gone.
One of the things an entrepreneur may hope that their business being successful will help them with is being able to support their family and other loved ones far into the future. What will happen with the monetary gains from their successful business when they pass away and to what degree such gains are turned towards this goal can heavily depend on what an entrepreneur does regarding estate planning.
A survey noted in a recent Forbes article indicates that having an estate plan is very common among business owners who have found success. The survey was of over 260 successful entrepreneurs. Nearly nine-tenths of these individuals reported having a will or more when it comes to estate planning.
However, the survey also suggests that there is one key way in which the estate plans of many successful entrepreneurs may be falling short. This is in how up-to-date they are. A large majority of the respondents who had an estate plan had a plan that was over five years old.
Estate plans that have gone a long time without being reviewed and updated can be at risk of no longer being well-tailored to a person’s circumstances and wishes. For one, a variety of things could have happened over this time that may have changed such circumstances and wishes. This includes things like a divorce, a death in the family, the birth of a child or big changes in one’s financial situation (such as a big boost in income due to the growing success of a business). Also, law changes can occur shifting what estate planning options are available for achieving one’s goals.
So, when it comes to their estate plan, it can be very important for a successful business owner to steer clear of the mistake of failing to keep their plan properly updated. Other mistakes it can be important to avoid are errors during the process of updating an estate plan. So, successful entrepreneurs may want a skilled attorney’s help with regularly reviewing and updating their estate plan.