Texas business owners undoubtedly know that the value of their businesses can plan a significant role in various aspects of their lives. In some cases, having a roundabout estimate of the company's worth may suffice. However, other subjects may need a more exact valuation in order for the issue to be addressed correctly. Estate planning is one of those areas.
Because most individuals want their heirs to receive a fair share when it comes to inheritances, having an accurate business valuation can come in handy. This information can help parties divide assets more equally if they hope that one or more of their children will take over the company. On the other hand, this information could also prove useful if the owner hopes to sell the company and distribute the proceeds among his or her heirs.
Furthermore, if an individual hopes to gift part or all of the company to another family member before death, that transaction could have tax implications. As most people know, when it comes to dealing with the IRS, having accurate numbers makes a considerable difference. Therefore, filing the correct forms with the correct information may help avoid unexpected tax implications.
Business owners who have substantial estates may have many concerns when it comes to estate planning. Valuations, trusts, wills and a variety of other aspects could leave many Texas residents wondering what options will work for them. Luckily, experienced attorneys are available to assist individuals who are looking to plan, need help with estate administration or feel the need to pursue probate litigation for an estate conflict.
Source: bizjournals.com, "5 reasons you need a business valuation", J. Benjamin Morgan, May 8, 2017