Let’s leave aside culture wars controversies about the opening ceremony – the Olympics still bring the magic. And in the dog days of summer, with so much chaos brewing in so many political and cultural corners … well, it is, in fact, a nice way to leave aside the culture war.
Case in point: Simone Biles with a calf injury still pulled out an impressive floor routine and vault performance ending the night with a cushy point margin, in front of celebrities and the watching world.
In the last Olympics in Tokyo, Biles chose to pull out of the competition because of a perhaps-similar injury. It seems she’s learned a thing or two since then – or, at least, she came prepared in a new way.
Adversity has a way of forming us, if we let it. And that is a massive, cavernous “if.”
Too many of us get knocked down and learn nothing from the experience.
But Ms. Biles has made it this far because she had a plan. She built her gymnastics career intentionally. And she has learned from adversity the importance of preparation.
Now, in an extremely awkward segue, I will say, as your unofficial Minneapolis coach in all things business: I want to help you make the most of your financial opportunities TODAY, but (even more) I’m thinking about your TOMORROW.
A few questions to get you thinking in this direction:
- Is there an emergency plan in place if something happens to you?
- What are your retirement plans?
- Are all of your business eggs in one basket?
- What happens next?
All of these are very important components of a business that’s more than just a side hustle. Because we’re all in this for more than just mere work. We want to build a LIFE.
So let’s go a little deeper…
Estate Planning: A Starting Place For Minneapolis Business Owners
“My own view is that every company requires a long-term view. For a business owner, that long-term view should include a solid estate plan.” – Jeff Bezos
When business owners with substantial assets pass away (those with over 100K, like you) their estates are settled in one of three primary ways:
No Will: Without a will, the state’s legal code determines how the assets are divided, typically through a legal process called probate.
With a Will: Having a will still requires the estate to go through probate, but the distribution follows the directives laid out in the will.
Living Trust: With a valid living trust where assets have been properly transferred, the estate is managed privately according to the trust’s terms, bypassing the probate court.
For business owners, understanding these options is crucial because it affects not only your legacy but also the ease with which your loved ones can manage after your departure. This is something you obviously care about, and have the power to make significantly easier — through estate planning.
Neglecting estate planning means relinquishing all control over these decisions. (Definitely NOT what you want.)
In those cases, the probate court, possibly prodded by family members or creditors, dictates how your estate is resolved. The probate process is notoriously lengthy—often taking over a year—and can be quite expensive and public. This exposure can lead to family conflicts and unwanted public scrutiny.
Creating a will allows the court to follow your specified instructions for asset distribution, though it doesn’t permit you to control the timing or conditions of the inheritance.
Alternatively, a living trust provides much more control. By engaging with an estate planning expert, you can dictate not only who inherits your assets but also when and how they do so, all outside of court involvement.
And, a living trust keeps the estate settlement private and typically speeds up the process.
So why would someone choose a will over a living trust?
Honestly, the decision usually comes down to a lack of understanding or concerns about the costs involved in setting up a living trust. But the benefits of a living trust generally outweigh those of a will, making it a better choice overall for those ready for it.
For those not ready to dive into a living trust, starting with a will that includes an advance healthcare directive and a durable power of attorney is a great place to start. These documents ensure that designated individuals can make healthcare and financial decisions on your behalf if you become incapacitated.
Estate planning for business owners these days should also include digital asset management and strategies for handling global investments, so be thorough as you go through this process.
While it’s important for every adult, business owners in particular need to have comprehensive estate planning to protect both personal AND business assets.
If you need help starting or updating your estate plan, I’m happy to help you incorporate the business assets that need protecting, and connect you with an experienced Minnesota pro to help with the rest.
Here for you,
Grant Daffin