As a startup founder, you’re no stranger to building something from the ground up. Whether it’s securing funding, scaling your team, or navigating market challenges, your focus is on creating lasting value. But have you considered how your personal and business legacy will be preserved after you’re gone?
Contrary to popular belief, writing a will isn’t just about estate planning. Rather, it’s about ensuring that the hard work you’ve poured into your startup benefits the people and causes you care about most. It’s something that — as offputting it may seen — needs to be done.
“The parallels between building a startup and planning your estate are striking. Both require careful consideration, strategic thinking, and a clear vision for the future,” says Dave Kaplan, co-founder of Willed, a platform for writing and managing wills online. “Just as you wouldn’t launch a business without a plan, you shouldn’t build your legacy without proper estate planning in place.”
Why Founders Need a Will More Than Ever
It isn’t unusual for founders to wear multiple hats. Part of the founder’s life is juggling responsibilities, be they managing finances, leading teams, and executing growth strategies. Estate planning, however, is not typically to be found on the list of todos, despite it being one area where procrastination can have serious consequences. Without a will, your assets — both personal and business-related — could end up in probate court, causing delays, disputes, and unnecessary stress for your loved ones should the worst happen.
For example, if you own shares in your startup or intellectual property tied to your business, failing to outline clear instructions in a will could lead to confusion over ownership. This not only jeopardizes your family’s financial security but also risks destabilizing the future of your company.
Key Steps Every Founder Should Take
1. Inventory Your Assets
List all your assets, including any stakes in your startup, intellectual property, savings, and physical possessions. This ensures nothing gets overlooked when drafting your will.
2. Appoint Trusted Executors
Choose someone reliable to oversee the execution of your will. This can be a family member, close friend, or professional advisor. For business owners, appointing a co-founder or trusted colleague may make sense.
3. Plan for Contingencies
Consider scenarios like sudden illness or unexpected events. Having an enduring power of attorney in place alongside your will can help safeguard both your personal and business interests.
4. Review Regularly
Just as startups evolve, so should your estate plan. Revisit your will periodically, especially during major life milestones like marriage, divorce, or significant business changes.
Building a Legacy That Lasts
There is so much more to entrepreneurship than just building a successful business. As Steve Jobs famously said, it’s about making a dent, however small that may be, on the universe. And by taking the time to write a will, you’re not only securing your family’s future but also cementing your role as a true legacy builder.
And according to Willed’s Kaplan, “estate planning, like startup building, is about turning vision into reality. While entrepreneurs are skilled at planning for business success, personal legacy planning often takes a back seat. Don’t fall into that trap and get your estate planning done.”
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