Important Estate Planning Needs For Business Owners

Estate planning is important for all adults in Florida but for business owners, it is even more critical. Proper estate planning can help you protect your legacy and ensure that your business is properly managed in the event that you pass away. Not only is creating an estate plan even more important as a business owner, but there are also unique challenges that you must address. Our Volusia County estate planning lawyer has the necessary experience drafting plans for business owners and can help you overcome any challenges that may arise.

Creating a Business Succession Plan 

One of your main concerns when you start to plan your estate may be choosing a successor to take over if you resign, become disabled, or pass away. With a proper business succession plan in place, the future of your business might be uncertain. Disputes can arise between family members, partners, or key employees. It is also very damaging to a business when there is not a business succession plan in place. The following tips can help when creating a business succession plan:

• Select your successor and inform them of your choice to determine if they are capable, willing, and prepared for the position.
• Draft a business succession plan that outlines the roles and responsibilities of everyone involved, important timelines, and the steps to take during the transition phase.
• Ensure there is sufficient funding for the transition.

Draft a Revocable Trust 

A revocable trust is a very powerful and effective tool for protecting your property as a business owner. Revocable trusts are legal documents into which you can place property. During your lifetime, you can control and manage the property within a trust. You can include instructions within the trust for how you would like the property distributed after you pass away. Revocable trusts are separate legal entities and so, they are not subject to probate.

You can transfer your business interest into the trust, ensuring that business operations continue without costly disruptions or delays in the event that you pass away or become incapacitated. You can also use a trust to reduce estate taxes, allowing your heirs to receive a larger portion of your estate.

Buy-Sell Agreements 

A buy-sell agreement outlines what will happen to your business interests if you are ever unable to operate the company. Buy-sell agreements are particularly important for co-owned businesses, such as partnerships. These agreements can include many important details, including:

• A funding mechanism that ensures a smooth transfer of business, such as a life insurance policy
• A method for valuing the business to avoid disputes among heirs and beneficiaries,
• Provisions that will prohibit an unsuitable or unqualified individual from taking over your business interests

Our Estate Planning Lawyer in Volusia County Can Help with Your Case 

Business owners face unique challenges when planning their estate and these require careful consideration and legal guidance. At Bundza & Rodriguez, our Volusia County estate planning lawyer can provide it and help you create a plan that meets your specific needs and provides protection for you, your business, and your family. Call us now at 386-252-5170 or chat with us online to request a consultation and to learn more about how we can help.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html