Nobody enjoys considering their passing, but as a solopreneur, you’ll need to be extra diligent about your final wishes. In this episode of Solopreneur Money, you’ll learn all the areas that you need to consider to get your affairs in order to create an effective estate plan. Press play to learn about wills, trusts, and powers of attorney. Discover what you need to know to plan for your family and your business by gaining knowledge and hearing how I’ve created my estate plan.
You will want to hear this episode if you are interested in…
- What estate planning is [1:22]
- Planning your will [2:32]
- The different types of trusts [4:24]
- The different types of powers of attorney [8:35]
- What solopreneurs need to be thinking of [13:10]
- Learning from my situation [17:22]
- Writing it all out [21:02]
What is estate planning?
Estate planning is essentially a fancy term for getting your affairs in order. This umbrella term covers your will, trust, powers of attorney, and–as a solopreneur–a succession agreement or plans for your business after you pass.
Wills, trusts, and powers of attorney
Your will is a document that states what will happen with all your stuff once your bills are paid after you are gone. Many people create a simple will that divides their assets equally among their heirs.
However, you may have a more complex situation and decide to use a trust. A trust is essentially a holding place for your assets that is managed by a trustee–a family member, friend, or bank fiduciary. This trustee distributes the trust as stipulated.
There are a few types of trust. A testamentary trust is set up to spring into action upon death whereas an intervivos trust can be utilized while you are still living. The intervivos trust is a way to manage assets for you and your family. This is a type of revocable trust that can keep things simple and avoid probate when you pass.
A special needs trust can be put into place if you have a special needs child who needs their assets managed. This type of trust can provide for them while ensuring that their public benefits remain.
A power of attorney is necessary to plan for a situation where you may be incapacitated or near death. Listen in to learn the difference between a general power of attorney, a springing durable power of attorney, and a healthcare power of attorney.
Do you have a plan for your business when you pass? How is your business set up? Will your family sell it or do you have a succession plan in place?
As a solopreneur, there is more to think about than your personal estate planning needs. You’ll also need to consider what will happen to your business. Listen in to hear the estate plan that I have set up for my family and business.
After listening to this episode, take action. Write down all the details that your family needs to know. If you don’t have an estate plan in place, call an estate attorney and get started.
Connect With Gabe Nelson
- BOOK – The Solopreneur’s Money Manifesto by Gabe Nelson
- FREE Downloadable Resources at https://www.gabenelsonfinancial.com/resources/
- EMAIL: Gabe (at) GabeNelsonFinancial.com
- Follow Gabe on LinkedIn
- Follow Gabe on Twitter: @GabeNelsonCFP
- Follow Gabe on Facebook
- Follow Gabe on Instagram: @GabeNelsonCFP
Audio Production and Show notes by
PODCAST FAST TRACK