If you own a business in Palm City, it may be in your best interests to add a business succession plan to your estate planning. Palm City business owners may want their family or other loved ones to benefit from their company after they pass away, but they may not want to let them run it. If you are concerned about how Palm City probate affects business succession, it is prudent to discuss these issues with an experienced Martin County lawyer.
By formulating a business succession plan, a Martin County proprietor may be able to protect their company’s finances while ensuring that the business owner’s family benefits from an inheritance. If some family members wish to participate in running the company, or if they eventually want to become partial owners of it, a business owner might consider gradually training them now, rather than having the job thrust on them later.
Under the Florida Statutes, persons who pass without a will in Palm City may have their estate probated via intestate succession. This means that the court may award the assets to family members in the order proscribed by law, which might not be the distribution that the deceased would have wanted.
Martin County probate may impact business succession if the estate passes through intestacy, so it can be helpful to create a plan now to avoid that occurrence. An owner might begin by valuing the business’s assets and mapping out the company’s hierarchy and shares.
Some local entrepreneurs decide to gift small percentages of the business to family members while they are still living. It is important, however, to consult with a lawyer before making any significant changes to the business model.
If a Martin County resident goes into business with a partner, particularly if that partner is a non-relative, they may choose to include a buy-sell agreement in their planning. That way, upon the death of one owner, the co-owner may buy out the shares of the deceased, with the cash going to a pre-determined party/beneficiary, either outright or in trust, who is usually a family member or loved one of the decedent. The source of funds for this type of buy-out typically come from the proceeds of a life insurance policy.
If you have spent years building up the reputation of your Palm City business, the thought of passing the business to an inexperienced relative after your death may not be a pleasant one. The way in which Palm City probate affects business succession is a topic of which most people are not aware.
By forming a business succession plan now, you might ensure that your company continues to run as you would like after you depart. To achieve this goal, it is wise to consult with a Palm City lawyer who is well-versed in both probate and business succession.