Implications of Selling a Business on a Texas Trust or Estate

Estate planning requires individuals to take an inventory of and consider what they wish to do with their bank accounts, homes, car, and other personal belongings after they pass. In addition to these contemplations, Texas business owners must undertake strategic decision-making to pass on or dispose of their business interests correctly. Selling a business is a complex endeavor, and many owners focus on the immediate impact of selling their business without considering personal planning or potential beneficiaries.

Understandably, the immediacy of a deal may usurp the owner’s thought of personal planning; however, consulting with an attorney can maximize the owner and their beneficiary’s interests. An attorney can assist business owners in determining their best course of action.

An attorney can help the owner articulate what they need from the sale. Many business owners use the proceeds of a sale to fund their retirement. However, before deciding to sell a business, an attorney can work with a third-party valuation specialist to provide the owner with an accurate market value of their business. This undertaking allows for wealth planning ahead of a formal sale.

Further, business sales often significantly impact the owner’s taxes as such tax, and estate planning goes hand-in-hand with wealth transfers. Transferring ownership to loved ones, trusts, or similar entities may maximize allowable discounts and mitigate subsequent transfer taxes.

Moreover, those who have charitable intentions should consult with an attorney to discuss how strategic giving can allow for tax savings. Depending on the owner’s circumstances, business owners may consider donating shares of the profits to a charity or establishing a charitable trust to create a lifetime income stream. In the same vein, business owners may consider their future lineage in selling their business.

Finally, business owners should consider whether they will embark on another business venture. An experienced Texas trusts and estate attorney can help business owners develop a strategic business plan to determine what is best for the business owner and their families.

Contact an Experienced Texas Trusts and Estates Attorney

If you are considering purchasing or selling a business, contact an experienced Texas trusts and estate attorney to discuss the implications of your business decision. The Houston estate planning and elder law firm of McCulloch Miller, PLLC., has over 30 years of experience advocating for business owners and aging Americans. Our law firm combines traditional estate, tax, and planning services with a holistic approach to ensure that our clients receive personalized solutions to their estate planning needs. In addition to Texas trust planning, our firm handles Texas probate cases, special needs planning, public benefits planning, Medicaid Crisis planning, and estate planning for businesses. Contact our office at 713-955-7281 to schedule an initial consultation with an attorney on our team.

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