Page 16 - CFANnov13

TRANSFERRING YOUR

FAMILY BUSINESS, PART II
SPRING
wildlife
FEATURE | HARVEST

IN MY LAST COLUMN I introduced some of PAINTING

the more common strategies for minimizing taxes
when transferring your family business. Below are a WILDLIFE

few more to consider, but remember, none are with-
out drawbacks. You’ll want to consult a tax profes-

sional as well as your estate planning attorney to ex-
plore all strategies.

in Agriculture
Transferring Your Business with a Buy-Sell Agreement:
A buy-sell agreement is a legal contract that prear-

ranges the sale of your business interest between you
and a willing buyer. A buy-sell agreement lets you

keep control of your interest until the occurrence of
an event that the agreement specifies, such as your

retirement, disability, or death.

Grantor Retained Annuity Trusts or Grantor Retained

Unitrusts: A more sophisticated business succession
tool in a grantor retained annuity trust (GRAT) or

a grantor retained unitrust (GRUT). GRAT/GRUTs
are irrevocable trusts to which you transfer appre-

ciating assets while retaining an annuity or unitrust
payment for a set period of time. In general, an an-

nuity means you receive fixed periodic payments,
Winter Haven Native Paul Schulz
while a unitrust means your receive payments of a
fixed percentage of trust assets (revalued annually).
P
Shares His Labor of Love
Private Annuities: A private annuity is the sale of

property in exchange for a promise to make pay-
by ERIKA ALDRICH
ments to you for the rest of your life.

Self-Canceling Installment Notes: A self-canceling
installment note (SCIN) allows you to transfer the business
his art. It’s a love that he passes on through his own family; he PAUL SCHULZ IS AN ARTIST whose work does
to the buyer in exchange for the promissory note.
recently took his own son to watch the Monarch butterflies more than just depict a scene; it reveals the history and
gather by the millions in Mexico.
Family Limited Partnerships: A family limited partner- influences of the man himself. Not just pretty pictures,

His art also speaks of a few generations’ worth of ship can also assist in transferring your business interest Schulz’s artwork is a labor of love that tells any number
work and labor, as many of his paintings—especially to family members. First, you establish a partnership of stories.

those depicting citrus—have special meaning for him with both general and limited partnership interests. First off, his art speaks of family. The artist, a Winter
concerning the family company, Florida Chemical. A Then, you transfer the business to this partnership.
Haven native, maintains that his love of art was instilled

processor of citrus oil, Florida Chemical was started in him early by his maternal grandfather, William
by Schulz’s father, and Schulz himself ran the business As federal and state tax rules are subject to Pringle. Pringle was a master engraver with the
frequent changes, you should consult with a
for over 20 years. Schulz’s painting, Valencia Morning, U.S. Mint and a commercial artist. Schulz recalls
qualified tax advisor prior to
depicts an orange grove with a White Ibis on the wing—a making any investment
drawing and painting with his grandfather even
familiar sight in Florida. It was Schulz’s first painting decision.
at a young age. When he set off for college

that combined one of Florida’s most familiar agricultural as a young man, he majored in economics—
industries—citrus—
Raymond James something that seemed practical—but he took
& Associates, Inc.
with wildlife. Schulz
as many art classes as possible at his alma mater,
used prints of Valencia
member New York Davidson College.
Stock Exchange/
Morning as Christmas
SIPC
And what about his penchant for painting wildlife? That
gifts for customers and
too speaks of family. By his father’s side, Schulz honed

suppliers of Florida
his own love of nature and its wondrous flora and fauna; by BRAD DANTZLER

Chemical; it’s a piece of
as a boy he visited the lumbering giant tortoises of the
artwork that is familiar
Galapagos Islands at age 12 and trekked through the BIO: Brad Dantzler is a trusted financial advisor with over 18
years of experience. He is active in his church and community,
throughout the
steaming jungles of the Amazon and Ecuador at 14. The list has been an active President’s Club member for six years, and is SPRING
agricultural industry.
of places in the world where Schulz hasn’t visited would be
currently president of the Winter Haven Library Board as well as a CALVES
continued on PAGE 36
the shorter list, and it’s those wild places that have inspired
Winter Haven city commissioner.

16 | CFAN
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