Estate planning often gets pushed aside, as one often assumes there will be time to get to it. But sometimes, life throws us a curveball and reminds us of its fragility. For me, that wake-up call came 34 years ago at 33,000 feet during a turbulent flight. As the plane shook, my thoughts turned to my family waiting below. What would happen to my wife, Jill? What would happen to our baby boy at home? 

Suddenly, the importance of having a plan in place hit me. I realized that without it, their future could be uncertain. So, amidst the chaos of the moment, I made a promise to myself that when we landed, I was going to take estate planning seriously. It’s a promise that I have kept and is one that I believe everyone should take seriously for the sake of their loved ones. 

Now, estate planning is not just about finding peace during tough times. It’s a way for you to leave a lasting legacy, create value, and have control over your future. 

As an entrepreneur, you’ve worked hard for your money. But it is not just about what you earn, it’s about what you get to keep after taxes. Estate taxes can eat away a big chunk of your assets, limiting what you can pass on to your loved ones. Strategic estate planning gives you control. 

Over the years, I’ve discovered several unexpected benefits of estate planning for entrepreneurs that I want to share. 

The Unexpected Benefits: 

Certainty 

The life of an entrepreneur can be summarized as a life full of uncertainty. Whether it's the anxiety of an employee leaving, the risk of customers canceling contracts, or the possibility of deals falling through, entrepreneurs are constantly faced with situations where the outcome isn’t clear. 

Estate planning is the exception. 

With proper estate planning, you can reduce uncertainty around how much you’ll save in taxes, where your wealth goes, and how you can influence future generations. Every dollar you save in estate taxes is a dollar added to your bottom line. 

The Non-Traditional Beneficiaries 

 When most people think about the beneficiaries of their estate plan, they often think about their kids. One should note that there are also non-traditional beneficiaries that you can support through your estate plan. 

 If something happens and your family is hit with a large estate tax, they might be forced to sell your business to generate enough cash to cover the bill. Sudden sales could result in dramatic changes and upend what was special about your business. Some of your employees could lose their jobs and your customers might lose important services. With proper estate planning, your employees, shareholders, and customers can all benefit. 

 In addition to your business, proper estate planning leaves more assets for philanthropic giving. Who are the non-traditional beneficiaries that you care about? The better job you do with estate tax planning the more of them you can help. 

Creativity

Many entrepreneurs dread estate planning because they think there’s no room for creativity. They think it’s something boring that they have to do, not something inspirational that they should want to do. Besides the immense amount of tax savings, estate planning also offers you a chance to be creative and build something that does not exist yet. As Warren Buffet recently said in a press release regarding his own estate, “Leave your kids enough money to do anything, but not enough to do nothing.”

For instance, you could create a family bank structure so that if a next-gen family member wanted to start a business, there would be a way for them to show a business plan, have it validated, and then borrow capital to launch their dream idea. You could provide a pool of money to help future generations with their education. You could even have an allocation for philanthropy as a way to bring your family together around a common mission. There are many ways to creatively structure your estate plan - it all depends on what you want to do. 

It’s never too late to start.

One of the great ironies of estate planning is that when you’re young, estate planning often feels like the last thing you need to worry about. And many people put it off until they’re older. The irony is that there’s actually a huge benefit to starting early. By putting the right foundation in place early, you open yourself up to tremendous and even compounding benefits over time in tax savings, asset protection, and protecting your business and your family. It’s never too early to start thinking about and taking the first step towards an estate plan.

Even if you haven’t started estate planning, you still have time to create a successful one. I’ve had the privilege of working with families, entrepreneurs, and CEO founders in many different situations and phases of life. What I have learned is that regardless of how little planning someone has done, with just a few months of work we’re able to make a tremendous impact and help them leave a lasting legacy. By starting today, you have the potential to create a successful plan that aligns with your goals. It is never too late to create your estate plan.

Legal Disclosure

Cresset refers to Cresset Capital Management, and all its respective subsidiaries and affiliates. Cresset Asset Management, LLC, also conducts advisory business under the names of Cresset Sports & Entertainment, CH Investment Partners, and Cresset Capital. Cresset provides investment advisory, family office, and other services to individuals, families, and institutional clients. Cresset also provides investment advisory services to investment vehicles investing in private equity, real estate, and other investment opportunities. Cresset Asset Management, LLC is an SEC registered investment advisor. SEC registration does not imply any specific level of skill or training."