Business owners invest extensive time, money, and effort into growing an enterprise that can create wealth for many generations in the future. Protecting a Coral Gables business with estate planning ensures that even when you are gone, your business interests are preserved for your family and other key stakeholders and successors.
Numerous legal solutions could protect your business from probate and potential legal disputes in the future. A trained estate planning attorney can advise on the legal entities designed to protect a business in case of your retirement, disability, or passing.
Business owners in Coral Gables must focus on protecting business assets and personal assets when creating their estate plan. Otherwise, they risk the company passing through probate upon their death.
Not only is probate time-consuming and incredibly costly, but it is often unnecessary if an estate plan is structured correctly. A business that passes through probate may also have to temporarily halt operations, which could disrupt revenue and profits.
Family limited partnerships are one potential tool for safeguarding a family-owned business, and control over its growth story and assets in the future. A family limited partnership is a business or holding company owned by two or more family members. The structure allows family members to pool their assets for business purposes, take advantage of vital tax breaks, control how and when money is invested, and determine when members of the partnership receive distributions.
General partners are the primary owners of a family limited partnership, while limited partners retain an economic interest but do not directly control the day-to-day operations. Family limited partnerships are frequently used to safeguard generational wealth while enabling the succession plan of a family-owned business.
Another means of protecting a business through proper estate planning can occur by structuring the company as a limited liability company (LLC). This route can afford enhanced liability protection for owners and help keep personal assets safe from potential litigation or debt problems. An attorney can advise on which structures provide the best protections, benefits, and tax advantages for a specific business.
Establishing a trust is one common method of estate planning that can protect business interests in Coral Gables. A trust is a legal entity that is designed to hold assets for the benefit of specific parties.
While many trusts only come into effect after the grantor (the person who makes the trust) dies, this is not always the case, and depends on the structure of the individual trust. A revocable trust can be changed by the grantor as long as it remains under their control.
Although a revocable trust is the most flexible trust option, it does not offer business asset protection. When asset protection is an objective of planning, an irrevocable trust may be used. An irrevocable trust may not be changed after it is established, but assets placed into this type of trust are not viewed as personal assets. This can safeguard these assets from creditor claims or other legal maneuvers.
Due to the hard work and effort you have poured into your business enterprise, it should continue to thrive even if you are no longer here, and this requires careful planning, strategizing, and comprehensive protection. Veliz & Associates, P.A. can oversee all aspects of protecting a business in Coral Gables estate planning while utilizing tailored strategies that safeguard the value of your enterprise.
Every business presents a unique situation, and consulting with an experienced lawyer can guide you towards the best decision. Call us today to discuss protecting your business, yourself, and your family’s interests in a personalized estate plan.
We evaluate your case and determine how we might be able to help.
We will meet with you to discuss your next options and lay out a plan.
Our team guides you throughout the process so you feel confident about your choices.
(305) 250-9917