Question:
I have been the owner of a small restaurant for 25 years. Since my wife and children are not interested in the business when I die, I have provided for the sale of the business in my will. However, I have not addressed what will happen to the restaurant if I am unable to run it for a period of time due to an extended illness. I am 62 and enjoy taking care of the details of my business. Should I also plan now for possible future incapacity? What are my options?
Answer:
Yes, you should plan now for possible future incapacity
If you do not have a Power of Attorney, it is wise to have one. This will authorize someone to act on your behalf. Depending on the details of your business and number of employees, this may adequately cover you during recuperation.
Another alternative might be a revocable trusts. Among other uses, it can provide for the management of trust assets in case of incapacity. Your restaurant business could be placed in the trust and you can be both the trustee and beneficiary. You make the decisions about trust assets and you would be responsible for the income tax on any earnings of trust assets. Life goes on, pretty much, as before with only the title of the assets being in the trust. You would name a successor trustee for special cases as defined by the trust, ie. incapacity. This would be a person of your choice who would be under a legal duty to protect your assets. It avoids potential conflict among family members and any possible court involvement.
It is best for you to plan now and not leave to others, not as familiar with your business, to plan for you.
Have your questions answered by entering a comment or sending an email through http://www.ythlaw.com/.
I have been the owner of a small restaurant for 25 years. Since my wife and children are not interested in the business when I die, I have provided for the sale of the business in my will. However, I have not addressed what will happen to the restaurant if I am unable to run it for a period of time due to an extended illness. I am 62 and enjoy taking care of the details of my business. Should I also plan now for possible future incapacity? What are my options?
Answer:
Yes, you should plan now for possible future incapacity
If you do not have a Power of Attorney, it is wise to have one. This will authorize someone to act on your behalf. Depending on the details of your business and number of employees, this may adequately cover you during recuperation.
Another alternative might be a revocable trusts. Among other uses, it can provide for the management of trust assets in case of incapacity. Your restaurant business could be placed in the trust and you can be both the trustee and beneficiary. You make the decisions about trust assets and you would be responsible for the income tax on any earnings of trust assets. Life goes on, pretty much, as before with only the title of the assets being in the trust. You would name a successor trustee for special cases as defined by the trust, ie. incapacity. This would be a person of your choice who would be under a legal duty to protect your assets. It avoids potential conflict among family members and any possible court involvement.
It is best for you to plan now and not leave to others, not as familiar with your business, to plan for you.
Have your questions answered by entering a comment or sending an email through http://www.ythlaw.com/.
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