Estate planning introduces unique considerations for those with self-employment. Unlike traditional employment, self-employed individuals must manage various income streams, business assets, and tax structures. Here’s what you need to know:
Identify and Value Business Interests
Accurately determine your business interests and how they are held. Integrate them into your estate plan.
Explore Tax-Efficient Strategies
Minimize estate taxes and maximize wealth transfer to your beneficiaries with tax-efficient strategies.
Leverage Trusts for Asset Protection
Existing trusts can protect family wealth and offer tax benefits. Understand that trust assets don’t form part of your estate but are controlled through your role as a trustee or under a power of appointment.
Develop a Succession Plan
Ensure business continuity with a robust succession plan .
Review Beneficiary Designations
Update beneficiary designations for your business assets and accounts.
Obtain Adequate Insurance
Protect against income interruption with appropriate income protection and life insurance coverage.
Key documents, accounts and passwords
Ensure the transfer of key documents accounts, password and professional tram. This data must be stored in a designated location known to your executors.
Inherit Life Vault has been developed to cater for critical data storage
Communicate with Stakeholders
Share your business succession plans and estate planning decisions with family members and key stakeholders.
Estate planning for self-employed individuals is complex and requires a comprehensive approach. Consult with a lawyer to navigate these unique aspects of business ownership and financial planning.
See Inherit Advisers or lawyers or start your own estate plan at https://www.inheritaustralia.com.au/
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