An effective estate plan typically includes the following components:
Will: A legal document that outlines how the business owner's assets will be distributed after their death. Trusts: Legal entities that hold and manage assets for the benefit of designated beneficiaries, offering tax benefits and protection from creditors. Power of Attorney: A legal designation allowing a trusted individual to make decisions on behalf of the business owner if they become incapacitated. Buy-Sell Agreements: Contracts that outline how ownership interests will be transferred in the event of an owner's death, disability, or retirement. Life Insurance: Policies that provide financial support to the business or heirs in the event of the owner's death.