Page 22 - CFANOct13

TRANSFERRING

YOUR FAMILY
“We really need
BUSINESS, PART I

to see if this

AS A BUSINESS OWNER, you’re going to technology
have to decide when will be the right time to step out
can face
of the family business and how you’ll do it. There are
many estate planning tools you can use to transfer

your business. Selecting the right one will depend on allthese

whether you plan to retire from the business or keep challenges
it until you die.
R
Some of the more common strategies for mini-
mizing taxes are explained briefly here. Remember, and work,” he

none are without drawbacks. You’ll want to consult
a tax professional as well as your estate planning at- adds.

torney to explore all strategies.

You and Your Estate May Get Some Relief under the
MAGNIFIED
Internal Revenue Code If you are prepared to begin
transferring some of your business interest to your PHOTO of a wing-
malformed psyllid “RIGHT NOW IT’S WORKING GREAT . . . in the lab,” says Dr.
beneficiaries, a systematic gifting program can help
accomplish this while minimizing the gift tax liabil- (resulted from the Killiny, who works at the Citrus Research and Education Center (CREC) in Lake
treatment with RNAi
ity that might otherwise be incurred. In 2013, you Alfred. “However in the field, the control is very difficult.” Another part of the
under Dr. Nabil study involves making sure that this plant would not harm any bugs or species
can give up to $14,000 ($13,000 in 2012) per year, per Killiny’s research at
recipient without incurring gift tax. By transferring that are helpful to Florida groves, such as honeybees. “We really need to see if
the UF/IFAS Citrus this technology can face all these challenges and work,” he adds.
portions of your business in this manner, over time Research and Educa-
you may manage to transfer a significant portion of
tion Center in Lake Citrus greening disease, also known as Huanglongbing or HLB, was
your business free from gift tax.
Alfred).
discovered in southern Florida about eight years ago. Some $70 million has been
Selling Your Business Interest Outright When you sell invested in research to defeat the disease, which has proved itself to be more

your business interest to a family member or some- challenging than freezes, hurricanes, canker, and nematodes.
one else, you receive cash (or assets you can convert

to cash) that can be used to maintain your lifestyle or Researchers like Dr. Killiny have been working towards a solution, or at least to
pay your estate taxes.
control it, until a cure is discovered. “I'm trying hard to get all the permissions,” he says.
“There are no guarantees yet that we will have these [border] plants . . . It is promising.
In my next column, we’ll look at some more com-
mon strategies to consider when transferring your It is very promising.”

family business.
The research and findings of Dr. Killiny, however, are just one possible solution to
As federal and state tax rules are subject to frequent the threat of the disease. Scientists’ efforts have been broad-based and creative. Dr. Bill
changes, you should consult with a qualified tax advi-
Dawson, J.R and Addie S. Graves Chair at CREC, gives one other example of continued
sor prior to making any investment decision.
research: “Visual genes like the fluorescent protein from jellyfish could be attached to

bacterium to better understand how it causes disease in plants.”

Another researcher is seeking $2 million in state funds to improve pesticide
Raymond James
applications to combat the psyllid. Nicole Williams, chief executive officer of Cape
& Associates, Inc. Coral’s Application Dynamics, is planning to develop a ground applicator that would
member New York
Stock Exchange/SIPC
cut pesticide costs by using less— and “softer”— pesticides. “I think there’s a better
alternative,” says Williams, who hopes to have an apparatus to sell in one and a half to

two years.
by BRAD DANTZLER

The battle against citrus greening, efforts to conserve water, and monitor the weather

all have benefited significantly from this digital age. No longer do growers have to rely
BIO: Brad Dantzler is a trusted financial advisor with over on weather data from the airport or telephone hotlines. They can install their own
18 years of experience. He is active in his church and com-
munity, has been an active President’s Club member for six weather station, and capture the data remotely on their smartphones and computers.
They can use technology to fine-tune fertilizer applications. And they no longer have
years, and is currently president of the Winter Haven Library
Board as well as a Winter Haven city commissioner.
to rely exclusively on overhead sprinklers. They can water plants with special mats that
prevent overwatering and runoff.

22 | CFAN
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