Unique Estate Planning Needs For Business Owners

As a business owner, estate planning is an extremely important part so you can secure your legacy and ensure your business interests are managed properly after you pass away. For business owners, creating an estate plan involves unique factors and obstacles, as any plan must also address the complicated nature of business ownership and succession. It is important to work with a St. Petersburg estate planning lawyer who works with professionals and can help you overcome the obstacles you may face.

Planning for Business Succession 

When it comes to estate planning, one of your primary concerns may be choosing a successor to ensure ownership of your business is transferred smoothly. Without proper planning, the future of your business may be uncertain, potential conflicts could arise, and your business may even face closure. When planning for business succession, it is important to consider the following:

• Determine who your successor will be upon your death or retirement and ensure they are willing, capable, and prepared for the role.
• Create a succession plan that details timelines, roles and responsibilities, and steps in the transition process.
• Ensure there is enough funding for the transition to take place.

Asset Protection with a Living Trust 

Living trusts are powerful tools for protecting assets, particularly for business owners. A living trust is a legal document that allows you to transfer property to a trust and still control the assets during your lifetime. The property is then in the trust and not your individual name, so any assets in the trust are protected from the probate process. Living trusts have other benefits, as well, including:

• You can place your business interests into the trust, which can ensure continued business operations without costly delays or disruption.
• You can include details within the trust regarding how your business is managed during your lifetime and distributed after you pass away or retire.
• A trust can minimize estate taxes so your beneficiaries receive more of your estate.

A Buy-Sell Agreement 

A buy-sell agreement is a contract that details what will happen to your business in the event of your retirement, disability, death, and other triggering factors. These contracts are particularly important for partnerships and co-owned businesses. At minimum, your agreement should include the following:

• Funding mechanisms that will ensure the smooth transfer of the business, such as a sinking fund or life insurance policy,
• A method for establishing the value of the business to prevent disputes among beneficiaries and heirs, and
• Provisions that will prevent an unqualified or unsuitable new owner from taking control of your business interests.

Our Estate Planning Lawyers in St. Petersburg Helps Professionals 

As a business owner, you face unique estate planning challenges that require careful guidance and consideration. At Legacy Protection Lawyers, LLP, our St. Petersburg estate planning lawyers can help you create a plan that addresses your specific needs and that will allow for the smooth transition of your business and other property in the future. Call us now at 727-471-5868 or contact us online to schedule 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