Every New York Business Owner Needs a Plan: Why Estate Planning Isn’t Optional

Applause roared from inside of the Colden Auditorium at Queens College during Richmond Hill High School graduation 2017.

Jay Sobhraj, Executive Vice-President of Zara Realty, just announced the names of two RHHS graduates who will be receiving a scholarship to study computer science at the college of their dreams.

Estrella Perez will be studying at the Borough of Manhattan Community College and Malik Assad will be studying at the New York Institute of Technology.

"We are so grateful to Zara for this opportunity," said Perez, who is passionate about computer science. "I will not let you down Mr. Sobhraj," Assad proclaimed, as photos were being taken of the two.

The relationship between Richmond Hill High School and Zara Realty began last year when Zara Realty donated a $125,000 computer lab to the school. The computer lab has been used by a plethora of students for everything from curriculum to extracurriculars.

“This is a model for building real community between the school and the private community,” Principal Neil Ganesh said. “We have future leaders in our program and we’re really excited about this new resource for us.”

Recently, Sobhraj and information technology specialist Naresh Singh returned to the school recently to see how the “seed turned into a plant with burgeoning fruit.” Not only have students been able to focus on their passion of computer science, but there has been a trickle down effect into the school’s robotics program.

They found that the computer lab helped Perez, Assad, and the rest of the robotics team focus on enhancing their computer science knowledge, engineering skills, and form a serious direction for their robotics team, Qubit. In just one year, the team has been able to achieve incredible success which includes building their own robot.

Sobhraj and Singh were so impressed with the focus and determination of the these RHHS students, that they decided to announce the plan to award two computer science college scholarships right then and there.

“I really want to give back,” said Jay Sobhraj. “Never forget where you come from and always give back to the community... that's what Zara is focused on.”

Richmond Hill High School offers several pathways, which include computer science and IT, art, criminology and forensics, business and engineering. As a supporter of computer science and IT, Zara Realty plans to grant one or two students with this opportunity each year.

"We are grateful to Mr. Sobhraj and Zara Realty for being an active community partner with their vision set on making a long term change," said RHHS Assistant Principal, Paul Wilbur.

Zara Luxury Homes, the innovative real estate holding company, provides quality homes in both Queens and Long Island. They have been serving the rental community for 36 years. Visit theirwebsite or call them at 718-291-3331 to inquire about their rental properties in Jamaica, Queens and Long Island.

By: Leslie Sultan

Every New York business owner needs estate planning because without it, the business you built can end up in court, frozen in place, or sold off in ways you never would have chosen. Estate planning is simply putting your wishes in writing, so your family, partners, and team aren’t left guessing or (fighting) about what happens next.

What Estate Planning Really Means for Business Owners

Think of estate planning as a game plan for your business and personal life if you’re not around or can’t make decisions.

It usually includes:

A will that says who inherits your business interests.
A revocable living trust to keep things out of court and moving smoothly.
Powers of attorney so someone you trust can sign checks, contracts, and payroll if you’re incapacitated.
A succession plan or buy/sell agreement so partners and key employees know exactly what happens next.

What Happens If You Do Nothing

If you don’t put a plan in place, New York law and the courts will make decisions for you.

That can look like:

Your business stuck in probate court, unable to be sold or managed easily.
Family members inheriting ownership but having no idea how to run the company.
Partners forced to work with relatives who don’t share their vision.
The business being sold quickly, often for less than it’s worth, just to pay taxes or debts.

Example:

A Brooklyn store owner dies without a will. Her two adult children inherit the business by default, but they live out of state and don’t want to run it. While they argue over what to do, key employees leave and the store’s value drops, so it sells for far less than it could have.

Protecting Your Family and Your Team

Your business isn’t just an asset; it’s a source of income for your loved ones and your employees.

A good plan can:

Provide clear income or a buyout for your spouse and kids.
Keep trusted employees in place so customers aren’t scared off by chaos.
Reduce conflict between family and business partners by spelling out who gets what and who’s in charge.

Taxes, Cash Flow, And Avoiding Fire Sales

In New York, estate taxes and debts can hit hard when a business is a big part of your net worth.

Planning ahead helps you:

Avoid or reduce estate taxes with the right mix of trusts, insurance, and gifting.
Make sure there’s cash available, so your family doesn’t have to sell the business quickly.
Keep control of when and how the business is sold or keep it in the family if that’s what you want.

Example:

A Long Island manufacturing business uses life insurance owned by a trust to create a pool of cash when the owner dies. That cash pays estate taxes and funds a buyout for family members who don’t want to stay in the business, so no one is forced to sell the company in a panic.

How Sammartino & Sultan Can Help

You don’t need to know all the legal jargon; that’s our job. What you do need is a team that understands both New York law and the realities of running a business.

At Sammartino & Sultan, we help New York business owners:

Translate your real-world goals into clear, workable legal documents.
Coordinate your will, trusts, powers of attorney, and business agreements so they all match.
Build a succession plan that makes sense for your company, your family, and your retirement timeline.
Review and update your plan as your business grows or your life changes.

If you’re a New York business owner and you don’t have a plan or your current plan hasn’t been reviewed in years, now is the time to act. Schedule a consultation with Sammartino & Sultan by calling us today at 631-505-1086 to protect your business, your family, and the legacy you’ve worked so hard to build.