The average cost of probate typically ranges from 4 to 5 percent of the gross estate, and probate can last several months to over a year. With proper estate planning, business owners can avoid the costly probate process while helping to protect their family and their business.

Your heirs may inherit more than your estate when you die. Federal estate taxes can be as high as 47 percent. An estate strategy using life insurance can help your estate avoid probate and provide cash so heirs can pay estate taxes.

When you own a life insurance policy, the issuing insurance company will pay a death benefit to your designated beneficiaries upon your death. Your heirs can use this money to pay ongoing business expenses or to settle estate taxes. It can also be a source of funds to buy your business and keep it running, or to pay for expenses associated with selling your business.

Put Trust in Your Estate Plan - An irrevocable life insurance trust can be used to hold a life insurance policy outside of your estate. Because the policy is owned by the trust, it is not considered part of your personal estate and is not used to calculate estate taxes.

Remember, the cost and availability of life insurance will depend on such factors as age, health, and the type and amount of insurance purchased. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. And if a policy is surrendered prematurely, there may be surrender charges and income tax implications. Before implementing a strategy involving life insurance, it would be wise to make sure that you are insurable by having the policy approved.

You've worked hard to build your business. With proper estate planning, you can help protect both your business and your family.