Texas tech entrepreneurs may want to protect their businesses in their estate plans. If they become incapacitated, they might want to choose who will lead the company. Likewise, they may want to make plans for what will happen to the business after their deaths.
Future of your business
In your estate plan, you could name a successor and a backup successor for your business. You could also designate someone to run the company if you become incapacitated. Planning for these life-changing events helps preserve your legacy and makes for a smooth transition. Conflict is common among families and company employees when the owner didn’t make arrangements for incapacitation and death. Employees would feel anxious, not knowing if they’re going to lose their jobs during the period of uncertainty. All of these factors hurt a business yet could be avoided with an estate plan.
Estate plan revision
Estate planning isn’t a task that you only do once. You may revise your plan as many times as you would like. Periods of rapid growth might prompt tech entrepreneurs to make changes to their estate plans. For instance, if you’re leaving the company to one child, then you may decide to give your non-business assets to your other children to maintain a more equal distribution of your wealth.
Employee protection
It’s possible to include provisions for employee protection in your estate plan. You could consider support for employees and their families and equity interest protection. Tech entrepreneurs often find it easier to hire talented employees when they offer these types of benefits.
As a tech entrepreneur, you have additional considerations when you are estate planning than those who aren’t running a tech company. Even if your business is just starting out, you may want to make arrangements for your incapacitation and death in your estate plan.
