We are not promised tomorrow. If you died or were disabled, how much would your loved ones have to invest in figuring everything out while they're also grieving your loss?
If you're an entrepreneur or a business owner and you have children, having a last will and testament is one of the things you need to prioritize. You want to make sure your assets are treated the way you want and that all those things flow while people are also trying to send you off to your “next” adventure.
It's important to be proactive because this is one area that families tend to fight about. So if you can get things in place to dictate how your assets are going to go and flow, then that takes it out of the hands of your children and your family, and there's less fighting.
The more complicated your situation is and the more assets you have, the more you’re probably going to need an attorney.
Now, you may have the best intentions but intentions are not legal. And so, your best intentions could go by the wayside if you die before they're instilled.
An Operating Agreement
Your operating agreement in your business is extremely important. People don’t pay enough attention to their operating agreement and think it's just something they have to have. But it actually tells you what happens in the event of death or disability. It tells you when you have to make cash calls. Especially when you have partners in a scaling business, you should probably look at it now and decide.
An operating agreement could invite someone into that business and designate them as a secretary. They can be a part of your business without being a shareholder or a member. There are certain hats people can wear as your trusted advisor. And so, this is pretty serious stuff.
You obviously want to grow your own business but you also have to protect it. If you are a 100% owner of your business, and something happens to you and you don't have somebody to step into your place, then people don’t have any authority to even write a check.
The Young Adult Power Of Attorney?
A Young Adult Power of Attorney is a type of legal document granted by an unmarried child, aged 18 years and older, to a parent. This is very useful in the event that your adult kids may need them for some medical decisions to be made at the hospital. Without this document, you can’t help your child.
If you want to learn more about how to get your house in order before something unfortunate happens, check out Episode 080: Getting Your House In Order Before Something Unfortunate Happens.
