Florida business owners typically have numerous issues to think about regarding a connection between their businesses and their estate plans. Many people prefer to incorporate business succession plans into their estate plans. It is helpful to explore the variety of options available to find a plan that best fits one’s needs and ultimate business succession and estate planning goals.
Making plans to sell a business outright is a common means of succession for small business owners. Some people choose to sell to a family member while others accept bids from prospective buyers outside their families. Stipulations regarding the sale of a business can be worked into an estate plan, especially if the sale is to take place upon the business owner’s death. Depending on the type of sale and when it occurs, there may be tax implications, which is why it is always best to discuss a plan with someone well-versed in business succession and estate planning laws ahead of time.
Some business owners set up irrevocable trusts to transfer accruing assets while continuing to earn an income from their businesses for a set amount of time. This set amount of time might expire while a business owner is still living or can be arranged so that the trust passes to beneficiaries at the time of the business owner’s death. This type of trust is known as a grantor retained annuity trust (GRAT).
A Florida business owner might make his or her business part of an inheritance by including it in a last will and testament and naming the person or people who will obtain ownership when the business owner dies. A business succession plan or estate plan can be updated as needed. An experienced probate and administration attorney can provide strong support in all aspects of a plan’s execution.