Family Owned-Businesses and Farms
For owners of family businesses and family farms, protecting what you have built is a top priority. Your company and your farm can pass to your children or loved ones and can create a strong legacy for future generations- if you take the right steps to keep the farm and company secure and protected. Your land and business could be at risk from a variety of different threats, and a Dallas farm and family business planning lawyer can help to keep your most important assets secure.
Vermillion Law Firm, LLC has extensive experience providing advice to family business owners and to owners of family farms. Give us a call at (972) 366-7201 to discuss your personalized situation with one of our legal professionals to find out how we can help you. We can also answer general questions you may have including:
- What do owners of family farms need to do to protect their land and equipment?
- What types of planning do business owners need to do to keep their company safe?
- How can a Dallas family farm and family business planning lawyer help?
What do Owners of Family Farms Need to do to Protect Their Land and Equipment?
Estate taxes are a substantial threat to family farms. If the value of your land rises, you can become land rich but cash poor. Your land may make your estate appear to be worth millions, but of course you do not want your heirs to be forced to sell the property or equipment.
If your estate is taxed because the value of your land is so high, your estate may simply be unable to pay the IRS the substantial estate tax which may be required. Some owners of farms are forced to sell hundreds of acres of land they inherit, just to pay the taxes. You don’t want to take a chance on this happening after your death.
There are also other threats to your farm as well. If something happens to you and you have no incapacity plan, your farm could be mismanaged while your family struggles to find out who should take control and how to take control. If you pass away and it takes a long time for the farm to transfer through probate, a period of uncertainty and mismanagement could also occur before your farm is transferred to new owners. You don’t want to allow this to happen either.
By using trusts, creating a strategic estate plan, creating a power of attorney, and making use of other legal tools under Texas law, you can protect your farmland and ensure that it transfers quickly and successfully to new owners after you pass away. You can also take steps to protect your farm from irresponsible heirs, bankruptcy, creditor claims, or divorce.
What Types of Planning Do Business Owners Need to do To Keep Their Company Safe?
Business owners face many of the same risks as farm owners do. The value of your company and of its assets could push your estate over the excludable limit so taxes could be assessed. Without sufficient cash on hand to pay taxes, the business or its assets could have to be sold.
A business also needs to have a strong owner at all times. A business succession plan can help you to ensure your company passes seamlessly to new owners upon your retirement or upon your death. If your company is co-owned, you also need to consider what will happen if any of the other owners passes away. A partnership agreement, a buy/sell agreement, and other related contracts among the partners can help you to make sure your company does not fall into the wrong hands so other co-owners are left working with someone they don’t want to own a company with.
There are many different ways to try to protect your business, from creating some of these essential legal documents to incorporating the company. You need to make the plan that is right for your organization.
How Can a Dallas Family Farm and Family Business Planning Lawyer Help?
Vermillion Law Firm, LLC provides invaluable assistance to owners of farms and owners of family businesses. We know how the laws work to protect you and what legal tools you can use to keep your land, equipment, and company safe for future generations. We provide advice and representation to clients in Dallas, Irving, Plano, and surrounding areas. To find out more about how we can help you, give us a call at (972) 366-7201 or contact us online.
John R. Vermillion is also licensed in Tennessee and Oklahoma