What Happens to Business When a Business Owner Dies?
- Formal Administration- This entails a court-supervised process that involves inventorying the estate, paying off debts, and distributing the assets per the law.
- Summary Administration- A more straightforward and non-court-supervised process that lets small estates close within a short time.
- Ancillary Probate- This type of probate is necessary when the deceased owned real estate outside Florida, which requires probate for the transfer of the asset.
- Trust Administration- If the deceased left behind a trust before passing, the trustee needs to administer the trust and pay out the assets to the rightful beneficiaries.
- Probate Litigation- When there are disputes between existing heirs or beneficiaries, a probate attorney can represent one party to resolve the matter.
Private Corporate Counsel’s Probate Lawyers understand that each client’s situation is unique, and we tailor our probate services to their specific needs. Our probate lawyers have years of experience in guiding clients through the probate process while remaining compassionate and proactive at every stage.
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Transfer of Ownership
One of the biggest issues that arises in probate is the transfer of ownership. If the business was held solely by the deceased owner, then it will need to be transferred to someone else during the probate process. This is often done through the use of a will or trust, but it can also be done through other legal means. In either case, it is important to work with an experienced probate attorney who can help guide you through this process and ensure that the transfer of ownership is handled properly.
Valuation of the Business
Another issue that arises during probate is the valuation of the business. This is especially important if the business is being divided among multiple heirs or beneficiaries. A thorough valuation will help to ensure that the business is divided fairly, based on its true value.
Tax issues are another common concern during probate. Business owners must pay estate taxes on any assets that they leave behind. This includes ownership in a business. If the deceased owner did not properly plan for these taxes, it can cause financial strain on the business, and even force it to be sold to pay off debts.
Ongoing Business Obligations
Finally, there are often ongoing business obligations that must be addressed during probate. This includes things like contracts, leases, and customer and vendor relationships. The executor of the estate will need to carefully review these agreements to ensure that they are properly handled during the probate process.
Probate can be a challenging process for any business. It is important to work with an experienced attorney who can help navigate the many legal and financial issues that arise during this time. By being prepared and working with the right team, business owners can ensure that their business is properly handled during probate, and that it continues to thrive in the future. Private Corporate Counsel’s probate lawyers work hand in hand with the Firm’s business and tax lawyers to ensure that all of the personal and business issues are addressed.
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