Most owners of Florida businesses probably have at least a vague idea of what should happen to their business after they’re gone.
But an idea that you don’t explicitly put into writing isn’t likely to help you or your South Florida heirs in matters of business succession.
- In coming up with a good Florida Business Succession plan, the first thing to do is to clarify what your goals are.
- Maybe you’d like for your second-eldest child and not the eldest to inherit the business, because your second eldest lives is West Palm Beach, while the eldest lives in New Jersey.
- Or maybe you want to sell company shares to a select few employees or to partners.
- Maybe a sale on the open market is the best option.
- In any case, it is a good idea to have significant preparation and comprehensive Florida estate planning documents written and filed well in advance.
If you intend to pass your Florida business on to your family’s next generation, then you may want to sell or give away parts of the business over time. Or maybe your preference is to have your children in Aventura or Fort Lauderdale inherit the assets after you die.
With each of these options, it is important to account for the tax implications.
- In 2015, the federal estate tax kicks in for estates valued at more than $5.4 million, though there are ways of limiting your family’s tax burden through careful planning.
- As with any major estate planning decision, your family’s specific dynamics will have to be considered.
- If there are special circumstances – for example, one child’s geographical location in Florida, or specific education, makes him or her better suited to carry the business into the future – then you’ll want to be aware of your options for achieving an equitable transfer of the estate assets.
West Palm Beach Probate litigation attorneys, and Delray Beach probate courts, have seen worst case scenarios with Florida business successions. We can tell you that the best method for prevention here is early Florida estate planning and preparation.
See http://www.pankauskilawfirm.com/ for videos and information on Wills in Florida, Florida Probate Law, Estate Planning, and Estate Administration in Florida.