Estate Planning Guide for the Self-Employed

Top 10 Self-Employed Estate Planning Tips that Can Save Your Assets and Provide Tax Shelters

It is evident by the numbers that Americans are fed up with corporate disillusions of job security, dwindling employee benefits, and unfair or inadequate pay grades, as record numbers of Americans have become self-employed. According to a 2005 study by the U.S. Small Business Administration and reported by USABizMart, there were 29 million small businesses and 19.8 of those had no employees.

This is the highest level of self-employment we have seen in this country to date. In addition, the U.S. Census reports that in 2007, 5.4 million Americans work at home, although that figure does not break down how many of those Americans are self-employed or work for an employer at home. However, it is assumed that many of those home-based workers are self-employed contractors, freelancers, and consultants. Because of these high self-employed statistics, more laws, lobbying groups, and organizations are in place for protecting the rights and benefits of the self-employed and their beneficiaries.

There are many different levels of estate planning protection that are needed by self-employed Americans depending on the assets in the estate. I have been self-employed for eight years and at the highest point of owning several properties, our corporation had a net worth of close to $1 million. Much of my time was spent on researching estate planning to protect these assets.

In some cases, I consulted with our CPA and our business attorney for guidance in self-employed estate planning. As a disclaimer for this article, I am neither a CPA nor an attorney, and the tips I provide are meant only as a research tool for you to consider along with your CPA, business attorney and beneficiaries.

Top Ten Tips in the Estate Planning Guide for the Self-Employed:

Get Durable and Medical Powers of Attorney