Estate Planning Forms

How estate planning forms can help preserve your business
By Maria L. MacMeekin Estate planning forms can help you preserve your business for your family after you're gone. Most estate planning attorneys begin with a form and then customize the form for the client. You can accomplish the same customization at home with effective estate planning software that helps you generate living trust forms, documents for wills, and estate planning checklists.

There are several issues to consider when using estate planning legal forms. If you know the issues you're facing in estate planning, the forms will work for you and not against you. If you do not know and understand the issues surrounding each form, an attorney's expertise can save time and money in the long run.

Here are some issues surrounding specific estate planning forms that can help preserve your business:

1. Obtain Durable Power of Attorney forms from each business with which your own business is affiliated.

2. Decide on the correct estate planning tool for the individual owners of the business.

3. Correctly word the buy-sell agreement for your business' situation.

Use institution-specific Durable Power of Attorney estate legal forms

Call your bank. Many banks and brokerage houses will only accept Durable Power of Attorney (DPOA) forms that it has created or has specified the language in the DPOA. Not all power of attorney forms are created equal and not all companies will accept your forms. Use DPOA documents which remain enforceable following mental incapacity of the principal.
Try:  Obtain Durable Power of Attorney forms like those available from ExpertLaw and limit the powers granted in the forms to your specific needs. Avoid using DPoA forms that don't contain the word "durable." Bank Webinars provides information on forms that banks, brokerage houses, and other businesses want you to use, as well as helping you with the language banks specify for your DPOA.

Complement any business owner's will with other legal documents including forms for estate planning

A will is an instrument that transfers property after a person's death. Transferring property during a person lifetime can reduce frustration and tax consequences. Such a transfer of property during one's lifetime is done through the use of insurance policies, documents for trusts, marital property agreements, and other transactions.
Try:  Consult Abanet.org for assistance in creating a pre-nuptial agreement or post-nuptial agreement to transfer property between spouses to maintain the business upon one spouse's inability to do so. Set up a Grantor Retained Interest Trust (GRIT) or other favorable trust to your business and family's situation. Obtain insurance policies on key people in your life. Create a will that takes care of the leftover assets not already disposed of at death. Sit in on a Continuing Legal Education (CLE) course at Legalspan.com to learn more.

Choose the right buy-sell agreement using the right estate legal documents

Keep your business going upon the death, retirement, or divorce of one of the owners by using a buy-sell agreement. Buy-sell agreements are legal documents for estates that allow for the transfer of ownership of a business. This is either done through a Redemption agreement or a Cross Purchase agreement. When a company buys back the leaving owner's shares, it uses the Redemption agreement. When other owners buy back shares in the company of the leaving partner, they use a Cross Purchase agreement.
Try:  Research the best option for your business's estate legal papers at BVResources. If your business wants to limit who can buy the shares, include specific limiting language in the document. Set a value on the business using either a periodic appraisal system, agreed value of the business and shares, or other technique to determine how much the shares will be worth. Get a buy- sell agreement form at USlegalforms.com.

• Consult your attorney, accountant, and other financial planning professionals along the way. Get an initial consultation with each and determine which legal instruments each recommends. Go from there on the hunt for forms. For the best results and least stress in the long run, pay for the right forms for your company from the beginning. Update those forms regularly.
• Use living will forms obtained from your doctor or hospital to deal with end of life decisions. A living will is not a legal instrument used to transfer property. Living will forms specify who will make end of life decisions for you if you are unable to. The living will form should not be confused with a will.