Does Your Estate Plan Properly Address Your Liquor License Assets?
If you are a business owner with liquor licenses, your estate plan should provide for the operation of the business and the handling of licenses during probate. These are often some of the largest assets in your estate and need careful planning to preserve their value upon your death. Not all people may qualify to hold a liquor license and that could become an issue if the named executor or beneficiary of the business does not qualify to hold a license. Alternative arrangements may be required.
Upon the death of a principal on a liquor license, an application must be filed with the State Liquor Authority to substitute the estate fiduciary for the deceased principal. The estate fiduciary (Executor or Administrator) must be the responsible person operating the business until the business is disposed of in the probate proceedings. The application process includes an evaluation of the qualifications of the proposed fiduciary..
During the probate process, the business may be sold, closed or transferred to the heirs/beneficiaries. If the business is transferred to the heirs or beneficiaries, additional documentation must be filed with the State Liquor Authority to change ownership of the responsible person on the liquor license from the estate fiduciary to the heir/beneficiary.
Working with a team of attorneys experienced in both liquor licenses and estate planning can be beneficial to successful transition of the business and preserving the jobs of the employees and revenue streams for the owner’s heirs/beneficiaries. If you’d like to review your situation with our team, give Tracy Jong a call or reach out by email. We’d be honored to help.
The forgoing is not intended to be and should not be construed as legal advice. Only after an attorney client relationship is established in writing may legal advice be given.
ATTORNEY ADVERTISING
The content has been prepared for informational purposes only; it should not be construed as legal advice, does not create or constitute an attorney-client relationship, and readers should not act upon it without seeking professional counsel.
