The last two years have presented a variety of challenges for business owners due in no small part to the COVID-19 pandemic. If you are a business owner, you have strived and painstakingly worked to create a successful business. As a result, when it comes to leaving behind your company or your assets, you understandably want to do so in the best way possible.
Having a good estate plan is the best way to make sure that your goals for the future are achieved. Estate plans are not written in stone, though. As 2021 draws to an end, there are some important estate planning strategies that you should consider.
Review the Terms of Your Estate Plan
Due to ongoing federal legislation developments as well as potential life events that might have occurred, your estate plan likely needs to be revised accordingly. Most recently, the Build Back Better Act was passed and requires certain estate plan updates. If you need assistance, attorney Lyon can help you review your current estate plan to assess whether your goals can be met under existing legislation or whether you will need to make modifications to achieve your goals.
Consider Your Business’s Relationship to COVID-19 Relief Programs
If you or your company received any type of federal, state, or local COVID-19 relief payments through programs like the Payroll Protection Program, you should make sure to retain copies of these payments and save them in your records. Government agencies have been thoroughly investigating who received these benefits to make sure that companies and individuals are complying. If your business is still part of a relief program, you should make sure to confirm this status as well as your compliance as the year comes to an end.
Think About Maxing Out Tax-Efficient Contributions to Account
Contributions to retirement accounts like 401(k)s and IRAs are some of the easiest ways to make the most of tax-efficient planning. If you have not reached your contribution limits, making additional contributions can provide a simple and efficient way to prepare for the future.
Prepare for Tax Season
The 2020 tax season was a difficult one for many taxpayers due to uncertainty as well as change. The 2021 tax season will likely be just as rough. You can get ready to tackle these issues now and realize some advantages by collecting and preparing information addressing your business’s assets and debts.
If you experienced any major changes to your business or engaged in important transactions like the sale or purchase of real property or other valuable things, you must consider this when creating a tax strategy.
By preparing to deal with taxes in advance now, you can make the most of your assets for estate planning as well as avoid the pressure brought on by a last-minute rush.
Contact a Knowledgeable Estate Planning Attorney
Estate planning involves a range of considerations, particularly for business owners. To make sure that you have the strongest estate plan possible, it can help greatly to speak with an experienced attorney. Contact attorney Jim A Lyon today to schedule a free case evaluation.