For many business owners, especially sole proprietors and owners of small businesses, keeping the enterprise running is a 24-7 job. Even on your day off, you're still probably not off—and not too far away. Just in case.
Hopefully you are fortunate enough to have a son, daughter, or a trusted employee you have mentored to run the business if and when you're not around. In addition, this “successor” might be the very person who can assume ownership or take over the operations when you pass.
Even though your successor may be ready now and waiting in the wings, it's still good to prepare a financial power of attorney. A recent article in the Birmingham Business Journal, "Four essential estate planning documents every business owner should have," speaks to this issue and what you can do to be prepared. Just in case.
A financial power of attorney can eliminate stress and confusion should you become incapacitated and unable to participate in the running of your business, let alone decide important business issues. The person you appoint as your financial power of attorney will make all of your financial decisions and that can greatly reduce costly and lengthy legal proceedings.
Reference: Birmingham Business Journal (February 28, 2014) "Four essential estate planning documents every business owner should have"