No one is eternal, and providing for your demise is crucial to ensure everything does not grind to a halt when you go.
You should account for all your assets in your estate plan. Yet, saying who will get something is not enough.
The Harvard Business Review found that businesses with a succession plan do 20% to 25% better when change at the top is needed. If you die without one, you risk leaving your family between a quarter and a fifth less if you intend to leave the business to them.
What would happen if you did not show up for work tomorrow and could never do so again. Does everyone know who would take charge? Does someone have the access, authority and knowledge to do everything you do?
Who has power of attorney for your personal affairs?
It is not only in business that you need to plan for life without you but in your family life too. Let’s say you are skiing this winter and suffer a nasty accident that puts you in a coma for two months. Will family life grind to a halt because no one can access funds to pay the bills or buy groceries? What about if you were mid-way through a house move. Does anyone have the ability to sign the paperwork that you cannot currently do? Or will everything collapse without you?
You can prepare for many of these personal issues by giving someone power of attorney. They can step in if you are temporarily incapacitated or if you die. While delays may not wipe value off your estate in the same way delays could wipe value from your business, it is a simple step to take that can prevent unnecessary inconvenience for your family.
Learning more about what an estate plan should cover allows you to create a plan that gives you and others peace of mind.