Business professionals who have scaled much growth in their careers already have a clear idea about their overall net worth. They also keep a close eye on the fluctuations of their income and take measures to increase it over time.
As a consequence, it is quite common for business owners to have a substantial amount of savings by the time they are about to retire. Besides the revenue that their business generates, their personal life investments such as real estate also grow in value.
Those who decided to purchase their business premises may have more wealth to pass on in their legacy. Some may have managed to do really well and may have overseas properties to their name as well.
In addition to the income earned by them through their business, it is the contribution of these assets to a person’s estate that complicates the process of writing a Will.
Keeping in mind the larger picture
It goes without saying that business owners enjoy a good lifestyle owing to their earnings. But if you ask any entrepreneur why they accumulated so much wealth, most would admit that it is to provide a comfortable lifestyle for their family.
Besides business being a thrill, it is also a great source for funding your retirement and passing on the baton of the good life to future generations. When a business owner sits down to divide his or her assets it is this larger picture that they must keep in mind.
Maximising net worth
Sometimes a wrong decision is all that it takes to lose your hard earned wealth. Take the example of those who fall prey to the sinister plots of pension scammers.
The only way to dodge these wrong turns is to seek professional advice about investments. By doing this one can avoid the trouble, loss and conflicts that usually arise as a result of miscalculations.
These professionals will also be able to guide you regarding the steps that you can take to minimise inheritance tax. It is a task that shouldn’t be left for the last minute and should be ideally tackled when we are at the peak of our physical and mental health.
Set clear objectives
Life is essentially about doing the right things at the right time. Writing a Will while you’re still in perfect control of your mental faculties is one such thing. However, there are a few important considerations that you need to take into account before you get around to writing the Will.
Is the wellbeing of your spouse the biggest priority that you have in mind? Do you need to make provisions for her health and safety? Or is it your children or grandchildren who need to be looked after? Do you need to make equal provisions for your children or do the circumstances and their character influence you to do otherwise?
It is crucial to have clear objectives in mind as it needs to reflect in your final wishes as well. Failure to make your intentions clear can give rise to several complications. In the absence of a Will, the courts or probate executors will distribute wealth according to strict laws.
Your wishes and feelings will not be taken into account and even stepchildren, ex-spouses and distant relatives whom you may not have wanted to give a share of your legacy, can make a claim for your estate.
Besides making provisions for your family, you can also give control of your business to a trusted business partner or relative whom you find capable of running the business. It is also possible to make a trust which provides for your family from the earnings of the business. You can also redirect some of your assets to your shareholders, long-serving employees or co-directors.
You can also sell the business and use the proceeds from it for various purposes. Those who are inclined to do something good for society may give away a portion of their legacy to a charity. Those who are religious can make contributions to institutions of their faith.
No matter what you decide to do with your wealth, you should know that writing a Will and having sufficient knowledge of legacy probate service is absolutely necessary to ensure that those wishes are honoured.