Ocala · The Villages · Gainesville · Central Florida · Florida’s Nature Coast
With all of these tasks on your plate, you are probably not spending a lot of time thinking about the future or what will happen to your company if something unexpectedly happens to you. However, this can be a costly mistake that will leave a lasting impact on your family and any business partners you may have. An Ocala business law firm can help you finalize a clear plan that will ensure your company will continue to thrive.
If you have a business partner, you will most likely want to leave your half of the company to them if you pass away. However, if you do not leave any written documentation stating this, the court will leave your portion in the hands of your spouse or children, who may not be equipped to handle this responsibility. Instead, your Ocala business attorney can help you create a buy-sell agreement. This document automatically allows one business owner to purchase the shares of another owner upon their death.
After someone dies, whoever is in charge of their estate will be required to pay estate taxes and income taxes from the last year the person was alive. Traditionally, the proceeds from a life insurance policy will be added to your estate and pass through the probate court. This causes your life insurance money to become taxed, and your beneficiaries will not have access to it until your entire estate is settled.
Places the money from your life insurance policy into your beneficiary’s hands for immediate use to pay off remaining taxes. Because this money does not pass through probate, it will not need to be taxed.
Places your business assets in a shared partnership with your successors. Because it is limited, you retain control while you are alive; after your death the money transfers to your successors — exempt from estate taxes because it does not pass through probate, and exempt from gift taxes because your successors were considered joint owners.
These forms have many strict and complex regulations, so it is best to contact business lawyers in Ocala, FL before finalizing anything.
In order to ensure that your business will continue to survive according to your wishes, you should create a plan that will clarify this transition. At the very least, it should explain who will manage operations after your death and who will officially be considered the owner. It can also be as detailed as you wish.
In regards to management, you may want to clarify any necessary training your successors will need to undergo, any specific employees you wish to retain, or any outside source you want to monitor the process. Further, you may want to clarify any differences between ownership and management of your company, or whether you want to transfer the company to a successor at an exact time while you are still living.
If you own a business, you most likely have an idea about its future. Perhaps you wish to sell your company while you are still alive, or after you pass away; you may also want your children to take over for you. Whatever you decide, you cannot afford to wait.
Many business owners continue to procrastinate making definite legal plans in writing because they assume they have more time. However, this results in business owners quickly creating a sloppy plan at the last minute, or dying without a record of their final decisions. Contact the Ocala lawyers at McGraw, Rauba & Mutarelli today, so you can rest easy knowing your family and business will both be protected in case the worst happens.
Talk to us about your matter
01
Tell us the basics
Your name, the best number, and a few lines about the matter. Thats all we need to start!
02
03
You Hear Back
Usually the same business day, with next steps and what a first meeting would cover.
