You started your own business to have full control over your finances and your future. However, if you attempt to pass on business assets in a personal estate plan, your authority could be gone in an instant, leaving your profits, employees, and reputation in the hands of the Florida probate courts.
If you own part or all of a business, a will-based estate plan is simply not sufficient to ensure succession and prevent challenges in court. If your probate case goes into litigation, you could pay twenty times what it would have cost to create the estate plan that would have allowed a smooth transition.
The Importance of Estate Planning for Florida Business Owners
When a business owner dies or becomes incapacitated, emotions can run high for surviving partners and family members that rely on the business for their financial security. It is not uncommon for businesses to dissolve simply because there was no succession plan in place.
Our comprehensive estate planning for businesses includes:
- Establishing a business succession plan. Business succession planning creates a clear framework for transitioning power after the death, incapacitation, or retirement of CEOs. We implement a legally-binding continuity strategy by creating or modifying operating agreements, adding provisions that will facilitate a smooth transfer of ownership.
- Creating buy-sell agreements. Life events such as divorce or disagreements can create legal battles over who actually controls the day-to-day operations of the business. A buy-sell agreement dictates what happens to co-owners in a company in the event of a death, disability, or divorce.
- Funding employee stock ownership plans (ESOP). A company trust fund allows owners and shareholders to share in the profits of the business during retirement. We can ensure that the trust is properly funded and devise an appropriate division of shares to owners and family members.
At Yolofsky Law, we believe that building the right foundation allows you to put anything you want on top of it. Whether you are the head of a family business, are creating an LLC, or are forming a professional partnership, our Personal Family Lawyers® can legally protect what you have worked so hard to build. Give us a call today to discuss your options with our trusted advisors.