Small business owners juggle many tasks all at once. It often feels like you’re trying to keep numerous plates spinning, dashing around to ensure none of them falls and breaks. While you’re doing this, there’s every chance that you’ll forget to do certain things, as you’re caught up with all the other tasks. This can be a problem as it means many small business owners neglect vital tasks that should be done as soon as possible.
You have read the title, so you know what one of these tasks is: writing a will. People write wills to dictate what happens when they pass away. It’s not something you want to think about, and you may wonder why you should make one if you’re very healthy?
Well, the sad fact is that anything can happen to anyone at a moment’s notice. One day you’re fine, and the next you could be in the hospital on life support. That’s a pretty grim thought, but it should help you understand why a will is important!
Furthermore, all small business owners need a will – arguably more so than regular people. Why? Well, here are two things to consider:
Ensure the safety of your business
Writing a will lets you dictate what happens to your business if you pass away. You can clearly state whom you pass the reigns to, or what steps should be taken in the event of your untimely passing. Effectively, this ensures that your business can stay up and running if you die. You have clearly outlined what should happen next, which should also stop any arguments amongst employees that perhaps thought they would take over.
Some business owners even dictate that part of their personal finances goes back into the business, helping it stay afloat. Without a will, there are no assurances that your business will stay up and running. Technically, nobody will own it unless you pass this asset on to him or her. So, it can be claimed by the state, which usually leads to liquidation.
Ensure that your life’s work isn’t for nothing
Similarly, a will gives you the chance to ensure your life’s work doesn’t just fade away into nothingness. This refers to your business, but also all the money and assets you have gained over time. By writing a will, you can say precisely where your assets will go, and who gets what. It makes life much easier for your family, as they can go through the will with a probate lawyer, claiming everything that you have passed down to them.
Even if you don’t have a family, a will is useful for choosing what happens to your life’s earnings. Again, if you don’t say where anything should go, the state tends to claim it. At the very least, your will could ensure that your earnings go towards charities of your choice – or possibly distributed amongst your employees.
The bottom line is that you need a will to secure your business and make life easier for your loved ones if you pass away. Without one, things get extremely complicated, and there is every chance your life’s earnings go to waste and your business no longer functions.