Our estate and business planning group have the necessary knowledge and experience to help with the unique needs of family farms, ranches, and other businesses and providing for their succession for future generations. As more Americans become entrepreneurs, they learn that wise business planning is essential to their success today and their financial security tomorrow. Our law firm can help you achieve your goals, whether your business is a one-person operation or one striving for a place on the Fortune 500 list.
Family business owners, farmers, ranchers and landowners face unique challenges surrounding how to preserve the family business. Sadly, a large majority of family businesses do not survive the transition to the next generation.
The typical family with a farm, ranch or other family-owned business is land rich but cash poor. With funds locked up in equipment, livestock, structures and land, the net worth may be impressive. But when you look at the cash flow, it is an entirely different story. Estate taxes are based upon the fair market value of your assets at death. If your heirs can’t readily raise the cash from other sources to pay those taxes, they may have no recourse but to sell the farm just to pay the estate taxes.
Your family-owned business poses two primary estate planning challenges:
Achieving these two goals means planning in advance for such expenses as estate taxes, as well as implementing strategies that give you maximum control over how, when, and to whom ownership of your business transfers.