Estate Planning for Business Owners — And Why It’s Time to Take Control of It
- Marc Lowe
- Jun 13
- 6 min read
Most business owners are planners by nature. You had to be — to build a company, take care of your employees, provide for your family, and create the life you now enjoy.
But here’s something that surprises many retirees who own a business (or who have recently sold one): you already have an estate plan.
The real question is whether that plan reflects your wishes — or whether you’re stuck with the “default plan” written by your state’s legislature.
Without the right documents in place, your family, your heirs, and even your business legacy could be subject to outcomes that you never intended. And unfortunately, this is where far too many business owners unknowingly land.
Many say, “I’ll get around to it later,” assuming they have plenty of time or that their existing will from 20 years ago still works. Others think estate planning is only for the ultra-wealthy — or that their spouse will simply “get everything” automatically.
But the reality is different — and the risks of inaction can be significant.
The Unique Estate Planning Risks Facing Retired (or Near-Retired) Business Owners
Whether you still own your company, are winding down, or have already exited, you face several unique estate planning risks:
1. Outdated Estate Plans From a Different Era
Many successful business owners created a basic estate plan decades ago — often when their children were young and their business was in its early stages.
But what’s changed since then?
Your wealth has likely grown significantly.
The Federal estate tax exemption has changed (and is scheduled to change again in 2026).
Your family dynamics may have shifted (children married, grandchildren born, blended families).
The business may have grown — or been sold.
If your plan hasn’t been reviewed in the last 5–10 years, it could contain outdated strategies that no longer serve your goals.
For example, many old plans use credit shelter trusts or other tax-driven structures that could unintentionally cost your heirs far more in capital gains taxes today.
2. Business Succession Is Often the Biggest Unfinished Piece
One of the most common risks I see is that business owners often don’t fully integrate business succession with their personal estate plan.
Without clear documentation, here’s what can happen:
Surviving family members may disagree about what happens to the business.
Business value can erode quickly without a succession or buy-sell agreement.
Lack of liquidity can force the sale of the business or other assets under poor terms.
Whether you plan to sell, pass your business to children, or wind it down gracefully, your estate plan should clearly spell out how that happens. If you wait too long to address this, it can leave a legal and financial mess behind for your family.
3. Digital Assets and New Wealth Aren’t Covered
Business owners today often have complex digital footprints — domain names, online businesses, subscription platforms, intellectual property, and even crypto assets.
If your estate plan hasn’t been updated to include digital asset provisions, your heirs may not even be able to access or control these assets when the time comes.
Common Myths That Hold Business Owners Back
Many of my clients originally put off estate planning for one or more of the following reasons:
“My spouse will just get everything anyway.” Not necessarily. State intestacy laws vary widely. If you die without an updated will or trust, your assets may be split in ways you didn’t intend.
“I already have an estate plan — it’s in a binder somewhere.” If it hasn’t been reviewed in the past few years, it may no longer reflect your wishes, your family’s situation, or today’s tax laws.
“I’m not wealthy enough to need this.” If you own a business, property, or even a moderate investment portfolio, you owe it to your family to make sure your affairs are clear and intentional.
“Estate planning is about death — I’d rather focus on living.” That’s understandable — but a solid plan isn’t about focusing on death. It’s about giving you peace of mind so you can enjoy your retirement and protect your family’s future.
How to Take Control of Your Estate Plan
You don’t have to tackle everything at once. The most effective approach is to break the process into manageable steps:
Step 1: Update the Basics
Every business owner — retired or not — should have:
✅ An updated last will and testament✅ A revocable living trust to help avoid probate✅ Powers of attorney for healthcare and finances✅ A HIPAA release so your loved ones can access medical information if needed
If you’re retired, this ensures that your family won’t face unnecessary court delays or financial barriers.
Step 2: Integrate Business Succession With Your Personal Estate Plan
If you still own your business (even partially), work with your advisor and attorney to align your succession plan with your estate documents.
Key questions to address:
Who will inherit or purchase your business interests?
Is there a buy-sell agreement in place?
Is there enough liquidity to support family needs without forcing a business sale?
If you’ve already sold the business, review how the sale proceeds are integrated into your estate plan — especially if you now have notes receivable or other ongoing income streams from the sale.
Step 3: Review and Optimize for Tax Changes
The current Federal estate tax exemption is set to drop in 2026. If your estate (including business interests, real estate, and investments) exceeds ~$7 million per person, it may be exposed to significant taxes unless you take action.
Common strategies:
Lifetime gifting to reduce your taxable estate
Use of Spousal Lifetime Access Trusts (SLATs)
Charitable giving via Donor-Advised Funds (DAFs)
Updating older trust structures to reflect today’s laws and goals
Step 4: Address Digital Assets and New Family Dynamics
If your plan doesn’t mention digital assets, now is the time to fix that.
Also, if you’ve had family changes (new grandchildren, children’s marriages, divorces, or blended families), be sure your plan reflects those realities clearly — or risk confusion and disputes later.
Final Thoughts: Why This Matters
As a business owner, you didn’t build your success by leaving things to chance. The same should apply to your estate.
If you don’t create an intentional estate plan, the government will do it for you — and it’s unlikely to reflect what you want for your family or your business legacy.
The good news? It’s never too late to take control.
And you don’t have to do it alone. At In The Money Retirement, we specialize in helping retirees — especially those who built wealth through business ownership — structure estate and succession plans that align with their goals, protect their families, and give them peace of mind.
If you’d like help reviewing or building your plan, we’d love to have that conversation.
👉 Schedule a complimentary consultation today — and make sure your legacy is protected on your terms.
About The Author
Marc Lowe is the Founder & President of In The Money Retirement Planning. He is a Certified Financial Planner and member of NAPFA National Association of Personal Financial Advisors, XY Planning Network & Fee-Only Network. He works with retirees and those approaching retirement. He has over a decade of experience helping these folks grow their net worth, organize their finances and build better lives for themselves and their families.
The information presented in this Presentation is the opinion of the author and does not reflect the views of any other person or entity unless specified. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. The information provided is for informational purposes and should not be construed as advice. Advisory services offered through In The Money Retirement, an investment adviser registered with the state of Connecticut. The information linked to on third-party sites is being provided strictly as a courtesy and convenience. When you link to any of the web sites provided here, you are leaving this website. We make no representation as to the completeness or accuracy of information provided at these websites. When you access these websites, you are leaving our website and assume any and all responsibility and risk for use of the web sites you are visiting.The tax and estate planning information offered by the advisor is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.
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