A business in Maryland is rarely settled with a one-page will alone. There is more than one way to distribute the assets of an estate apart from a will or trust. Business owners have more documentation to review and compete as they handle their estate planning.
People of all ages plan for their retirements by opening retirement accounts. The funds can be withdrawn at any time but with tax penalties. A Roth IRA allows the growth of tax-free funds and tax-free withdrawals when its owner reaches retirement age. During or after the retirement, one or more heirs are eligible to receive funds.
Life insurance policy
A life insurance policy includes a list of designated beneficiaries who receive funds without going through probate. As a person’s financial situation changes, the insurance policy undergoes changes from the amounts of payouts to the list of beneficiaries.
Letter of intent
A letter of intent is a form of contract that allows two or more parties to agree to perform services in a legally binding document. In estate planning, the letter explains the decisions and goals of the estate’s owner.
Healthcare power of attorney
The healthcare power of attorney allows a person to make decisions on behalf of an incapacitated person. This signed document is often more essential than a will or trust during an unexpected emergency.
From estate taxes to retirement planning, business owners have more work to complete as they distribute their incomes and assets. In addition to needing a will or trust, they consider the benefits and drawbacks of saving funds in a retirement account or life insurance policy. Overall, they have the general tasks of selling and transferring the ownership of a business. Their additional options include making a power of attorney in addition to selecting beneficiary designations.