As a small business owner, your company is more than just a job. It's a significant part of your life and your family's future. Planning for what happens to your business and assets after you're gone is crucial. This is where estate and succession planning come into play.

What Is Estate Planning?

Estate planning involves deciding how your assets, including your business, will be managed and distributed after you pass. Without a proper plan, your family might face legal challenges, high taxes, or even the forced sale of your business! In 2025, the federal estate tax exemption is $13.99 million, but it's expected to decrease in 2026. Acting now can help you take advantage of the current exemption and protect your assets.

Key Estate Planning Tools Include:

• Federal Estate Tax Exemption Update: In 2025, the federal estate tax exemption is $13.99 million per individual. However, under the recently enacted One Big Beautiful Bill Act (OBBBA), this exemption permanently increased to $15 million per individual (or $30 million for married couples) starting in 2026, with annual adjustments for inflation.
• Strategic Planning Opportunity: Clients should consider utilizing the current exemption levels before the end of 2025 to maximize wealth transfer strategies. Acting now can help lock in today's higher protection and potentially reduce future estate tax liabilities.
• State Estate Taxes: Clients should also be aware that some states impose their own estate or inheritance taxes with lower exemption thresholds. It's essential to consider state-specific laws in estate planning.

What Is Succession Planning?

Succession planning is about preparing for the future leadership of your business. It's essential to ensure your business continues smoothly if you're no longer able to run it. The benefits of succession planning include:

• Business Continuity: Keeps your business running without interruptions.
• Family Harmony: Reduces conflicts by clearly outlining who will take over.
• Financial Security: Helps maintain the value of your business for your heirs.

Steps to Create a Succession Plan:

• Identify a Successor: Choose someone capable of leading your business.
• Develop a Transition Plan: Outline how and when the leadership change will happen.
• Legal Documentation: Use tools like buy-sell agreements to formalize the plan.

How can Northern Bank’s Wealth Management Partner, Asset Strategy, Help?

Estate and succession planning work together to secure your business's future and your family's well-being. Without them, your life's work could be at risk! Asset Strategy specializes in helping small business owners like you create comprehensive and tax-efficient plans tailored to your needs. Your future deserves thoughtful planning. Don’t leave it to chance — email WealthManagement@NBTC.com today and start safeguarding what matters most.

Ready to learn more? View our Business Succession Planning webinar on-demand here.

DISCLAIMER:

Because investor situations and objectives vary this information is not intended to indicate suitability or a recommendation for any individual investor. This is for informational purposes only, does not constitute individual investment advice, and should not be relied upon as tax or legal advice. Please consult the appropriate professional regarding your individual circumstance. Product guarantees are based on the claims-paying ability of the issuing company and assume compliance with the product’s benefit rules, as applicable. There are retirement account risks that could diminish investor returns, such as, but not limited to: low interest rates, market volatility, withdrawal timing and sequence of returns risk, government policy uncertainty and increased longevity. Prospective investors should perform their own due diligence carefully and review the “Risk Factors” section of any prospectus, private placement memorandum or offering circular before considering any investment. Advisory services offered through Asset Strategy Advisors, LLC (ASA), an SEC registered investment adviser. Insurance services offered through Asset Strategy Financial Group, Inc. (ASFG). CIS, ASA and ASFG are separate companies.

Products and services made available through Asset Strategy and Concorde Investment are not insured by the FDIC or any other agency in the United States and are not deposits or obligations of, nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.