Known for its pro-business policies and low-tax profile, Florida is one of the best US states to own a company. It is fundamental for entrepreneurs not only to succeed in business but also to have a solid succession plan to preserve their legacy.
In this article, you will understand what Florida estate planning entrepreneurship is.
Florida Estate Planning Entrepreneurship – The Fundamentals
It is impossible to preserve the legacy of a successful business without a well-designed estate plan. Business owners must work strategically to preserve their wealth and minimize the risks associated with succession for their families.
In many cases, entrepreneurs fail to prepare for the event of incapacitation or death. When an unforeseen circumstance arrives, unprepared business owners may lose track of their activities.
It is not unusual to find businesses that die with their owners due to the original owner’s failure to prepare for succession.
Why is Business Succession Essential for Florida Entrepreneurs?
Estate planning and business succession are concepts linked to each other. Considering someone’s business is usually that person’s most valuable asset, it would be a fatal mistake not to include it in an estate plan.
By thinking ahead, Florida entrepreneurs can ensure the continuing success of their companies while preserving their legacy.
Without proper coordination between estate planning and business succession, an entrepreneur’s loved ones may be subject to a stressful and lengthy process of estate division. Combining business succession and estate planning place guarantees:
- The existence of capable individuals to take care of the company in the event of the owner’s incapacitation or death
- A stable process of business succession that mitigates issues associated with ownership transition
- A smoother process of asset division
- No unnecessary disputes between the entrepreneur’s family and other business owners
- The interests of the entrepreneur’s family and heirs will be secured
Florida Estate Planning vs. Business Succession – Taking a Closer Look
The first element of an estate plan is ensuring all assets are titled according to a specific purpose.
In most cases, Florida entrepreneurs own multiple assets. It is fundamental for them to check the titling of these assets periodically to identify whether all assets are titled adequately. Another aspect overlooked by entrepreneurs is preparing a last will.
If someone dies without a will in Florida, his or her estate is inherited according to the state’s intestacy laws. The court is responsible for executing and distributing the estate after determining the fair share of each heir, which is a lengthy and bureaucratic process.
Another essential aspect is probate avoidance. If a person dies with a will in Florida, the document must be submitted to the appropriate court within 10 days of discovery of the fact.
The court will determine the document’s validity and identify whether the decedent’s estate must go through probate. During probate, the court will designate a personal representative to execute the estate according to the provisions in the will.
The larger the decedent’s estate is, the more complex and time-consuming probate tends to be. It is fundamental for Florida entrepreneurs to seek expert legal counseling to find strategies to ensure a smooth inheritance process, such as legacy trusts, dynasty trusts, or other similar legal tools.
Preparing for the event of incapacitation also shields one’s estate against uncertainty, especially documents such as living wills, healthcare directives, and powers of attorney (POAs).