Clarifying Your Business Transfer Goals
Our experience also includes helping business owners with their planning needs. Our counsel typically addresses strategies for staying with the federal estate tax exemption, ensuring the smooth succession of owners while maintaining business operations, and probate avoidance issues.
A common strategy we offer our business clients concerns their intentions for transferring voting versus ownership rights. A beneficiary, such as a spouse, may not want to assume control over business operations. In that situation, we might recommend that the spouse retains ownership shares but executes proxy documents to delegate voting rights to another individual.
Managing Family Limited Partnerships
Another estate planning strategy for our business clients is a family limited partnership. Texas was one of the first states to recognize FLPs, and they remain a popular choice. In fact, our firm continues to supervise FLPs for our existing clients. This option sets up an actual partnership for the business, consisting of general and limited partners. Since the general partners have control and unlimited liability, the parents or original business owners may assume that role. The children might prefer to acquire only limited partnership shares which transfers income to them.
Coordinating Your Business Goals With Trusts
Your business transfer plans might benefit from trusts. There is incredible diversity in trusts. We have helped clients set up voting trusts for business entities, for example. We will also coordinate your business instructions with the other aspects of your estate plan. Take the first step toward protecting your business’s future. Call us at 409-241-8615 or complete our online contact form to set up a free consultation at our Beaumont office.