Global Resources Consultants Propose Solutions to Shocking Lack of Small Business Estate Planning

CHICAGO - Aug. 25, 2017 - PRLog -- Less than 25 percent out of the total group has a living trust, or a last will or testament. A surprising majority of 65 percent had nothing in terms of succession plans. This data dramatically illustrates the lack of estate planning among many small business owners. Global Resources, a specialist management consultancy firm, is offering solutions for small business owners to secure the succession.

Some small business owners hope that life insurance, or similar insurance policies, may cover succession in the event of a medical emergency, retirement, or death. Some believe cash savings might too.  Not necessarily, according to Global Resources consultants. Businesses are very fragile until succession is secured. Small businesses often take decades to accrue cash savings. It's hard to predict the risks a company can be exposed to, so all owners must have several important legal documents prepared in advance: the financial power of attorney, a living trust, and a last will, as well as any changes in the legal structure that may be advised for the proper succession of the business to ensure its long-term success from one generation to the next.

Young entrepreneurs quite commonly do not immediately think about estate planning. But this is something that should be handled early on in the business, or as soon as the business starts growing. Waiting too late could cost a family or a company a fortune when securing succession, warn Global Resources LLC (http://globalresourcesreviews.com/) consultants. Estate planning is a crucial step towards ensuring that a small business survives even if the founder is no longer around.

Global Resources can help small businesses estate plan with the following legal documents through an affiliated company that provides legal services to our clients:

Obtaining Financial Power of Attorney

The financial power of attorney refers to legal ability to handle the company's finances. This responsibility usually falls on the owner or the chief executive. But just in case the head of the company is incapacitated or unavailable on a permanent basis, the question arises as to who would have access to the company's coffers. Businesses will have responsibilities like paying employees or taxes. These financial transactions must continue even if the head is not present. The financial officers of the company are employees. Keep in mind that these officers do not have the legal right to make financial decisions on their own that affect the entire company. Therefore, the owner or the head of the small business should give the financial power of attorney to another to oversee the company's financial resources. The FPOA could be the company lawyer, the owner's spouse, or the company's CFO. This person would be responsible for all finances following the death or incapacitation of the owner.

Setting up a Living Trust

A living trust will allow a small business owner to decide ownership of property or assets following death. Deciding these issues is one of the most important aspects of estate planning. The living trust, which is one option that may be suitable for a small family business. Having a living trust will keep the decision of succession away from the courts in case of unexpected death.   A living trust becomes the instrument by which the assets owned by the individual who creates the trust passes them on to the people designated as beneficiaries in the trust.

Writing a Last Will or Testament

This is a statement of intent that declares how the assets or debt of a small business should be handled if the person responsible for these things unexpectedly dies. The will have an executor who will oversee it being carried out if it ever comes to that.

Global Resources consultants can assist small business owners and young entrepreneurs obtain the above legal assistance to make the succession of the company clear.

About Global Resources:

Global Resources LLC is a management consulting firm located in Illinois, U.S.A. We specialize in providing consultation and business development services to small and medium sized businesses in North America. Our consultants help companies grow and scale, maintain a positive cash flow, remain productive, and cut back on waste. Businesses can obtain comprehensive reviews from Global Resources to improve in-house practices.

Contact: 855-338-0266