If you have been in business in Indiana for a while, then you realize that debt is often part of success. The money you owe is as important as the money you make when it comes to your company’s finances.
Your estate plan may need to address how your business stats will be handled when you are no longer there to manage them. While there may be separate agreements and succession plans in place for certain types of companies, you may want to incorporate these terms into your estate strategy in other cases.
As mentioned on FindLaw, your heirs and relatives would not necessarily be subject to your personal debts. This can become complicated when you are the sole proprietor of a company. For example, you may not want your creditors to remain unpaid if they are valuable business partners.
Sole proprietorships have fewer of the special legal and financial protections than do other types of businesses, such as corporations. However, at some scales, sole proprietorships perform better when it comes time to pay taxes. If you are worried about how these matters will be resolved after you are gone, then it could be time to re-examine the structure of the assets and liabilities in your company. Such an examination could help you gain the protection you need and retain the efficiency that you want.
An estate plan should address the specifics of your business. Each small and medium businesses has a different legal situation, so please do not use this as legal advice. It is only meant to be a general background.
