When writing an estate plan, people have to think about all sorts of things, including their assets. But, what really constitutes an asset if one is in business? It may not be as clearcut as all that. When Arkansas entrepreneurs understand what’s at stake in their estate planning, they may take the time to ensure those plans are thorough. Essentially, an asset is something that has some economic value currently or will have in the future.
Assets can be labelled as short term or fixed. When it comes to a business, assets are recorded on a balance sheet and current assets are usually converted into cash within a year. Fixed assets include things such as buildings and equipment.
An individual’s personal assets are much the same. They can have value financially, but some assets aren’t necessarily valuable monetarily, but hold some value in terms of the emotion or sentiment attached to them such as a family heirloom. It is just as important to include these items in estate planning documents to avoid hard feelings when it’s time for the will be be probated.
Understanding why estate planning is necessary for protecting assets — whether in a business sense, or personally — is crucial. An Arkansas attorney is able to explain to his or her clients the importance of an all-encompassing estate plan and how to ensure their assets can best seamlessly pass to their heirs. It is extremely important as well to cover all bases when it comes to business interests in an estate plan.