Estate planning can be a jungle, and a guide can be invaluable.

There comes a time for a business owner to plan transition of ownership.  Before selling or giving a business to family members, the owner must devote thought to the outcome that he or she wants to accomplish. Regardless of the intended family recipient(s), all parents have to ponder and answer the following questions to determine their exit objectives:

estate planning can be a jungle

  • How much wealth do we want to keep?
  • How much wealth do we want the kids to have?
  • How much is too much?
  • And finally what tools should we use to minimize the estate and gift tax consequences?

It’s key that business owners define their financial exit objective, then they can become effective in the designs for the optimum transfer mechanisms for passing the wealth to their children with minimal tax impact. It’s the first part that is daunting — Figuring out one’s wealth transfer objectives.  The transfer of wealth tends to be difficult, as family relationships and business objectives become part of the same equation. For example, if an owner wants to transfer the business to a child but still retain control and authority over all business decisions, it is doubtful the child will be ready to run the business once the transition is complete.

These are a few of the subjects that we can discuss when we meet.  I will take the role of “estate planning guide” most seriously.  So please call me, and let’s take on the “jungle” one step at a time to insure your success.