Next to owning real estate, owning and leasing out taxi medallions are a way to increase your estate and long-term wealth so that your family can inherit more. You might start by owning one and ending up owning many if you are lucky enough to get your hands on them. If you have owned them for a long time, chances are the value of the medallions have appreciated. A taxicab medallion is a valuable asset that can increase your estate’s value because there are a limited supply of them around in Miami –approximately 2,121. The Miami-Dade County determines how many medallions they will issue. Medallions are considered intangible property. Miami taxi medallions are generally issued through lotteries or through an auction.
Purchasing and/or Leasing a Medallion
A taxi medallion can be leased to a qualified taxi operator. A taxi medallion allows the driver of a taxi in Miami to operate their taxi in Miami-Dade County. According to the County, the going rate to purchase a Miami-Dade tax medallion is somewhere around $340,000. The County only auctions a handful of new medallions every couple of years. At the last auction in 2012, the average medallion sold for $425,000. Since 1998, drivers have been able to purchase medallions, but most are owned by investors and cab companies. Some own multiple medallions. Prior to 1998, medallions were not even in existence, there were only permits.
The difference between permits and medallions are you can borrow against them and use them as collateral. Medallions may appreciate in value. If you are looking for an investment, taxi medallions may be of interest to you.
Transferring Your Interest in Your Medallion to a Trust or by Making a Will
You can transfer your ownership interest to a trust for the benefit of your beneficiaries or leave the medallions to your beneficiaries in your will. A Miami probate and estate attorney can help you prepare the necessary estate planning documents. After you pass away, the executor of your estate can either arrange for the lease of your medallions to a qualified driver who pays a fixed lese or rental payment, usually on a daily basis, or the medallions may sold and the proceeds disbursed to the beneficiaries.
Miami Probate and Estate Attorney
A Miami probate and estate attorney can also assist with your medallion estate planning and other estate planning strategies. If you wish to speak to a Miami estate attorney, call the Law Offices of Albert Gurevich at (786) 522-1411.