January 4, 2007
You have many choices. Like most of my clients, you have an incorporated business.
..1) You could issue stock to your son on a gradual basis. However, you would lose some control when you pass on stock.
..2) Or if you want to stay in complete control until you retire, then you could create a will listing your son as the beneficiary of your corporate stock. But when you use a will, it means that your asset will go through probate. Say your business is worth $350,000.00. An attorney's fees might be 4% to 8% of the assets. That means your estate could pay $14,000 to $28,000 just to get the business transferred to your son.
..3) Another option is creating a Living Revocable Trust. It serves like a will, but avoids probate and the cost of probate. Setting up the trust should cost $1,400 to $1,900. This is much less than compared to the large fees above. Usually the settlement of the trust is quicker than probate. The subject is more complicated than can be fully explained here. Feel free to set up a meeting so that I could explain more in person.
Above is a photo of my Cadillac XLR Roadster and my friend Jean's XLR (from New Mexico) while hanging out in downtown Panama City. Henry (CEO)
