How to better address this sensitive issue with our clients. With business succession planning, there are many components and moving pieces involved, as well as tremendous obstacles. The most successful multigenerational family businesses share a commitment to charity and community development. Download the PDF for the full article.
Trusts & Estates Articles
The statistics are shocking and sobering. Very few family businesses successfully transition to the next generations. Estate planners may be unaware of the true reasons for this and therefore may be unable to properly help our clients.
John Ward’s Perpetuating the Family Business is not about saving taxes, rather it is about saving the family and its business. The book, a self-help guidebook to family business owners, is a synthesis of Ward’s experiences in advising such owners here and abroad.
In our practice and in the real world, it is usually easier to purchase real estate than to sell real estate. This often presents real world difficulties for businesses seeking to take advantage of the “like-kind” exchange provisions under section 1031 of the Internal Revenue Code.
Many tax and estate planing professionals are aware of the basic tax rules governing dedications for charitable contributions. They know the general distinctions between the limits on income tax deductions for contributions to private foundations, and for contributions to public charities.
The real estate wealth created over a lifetime (or over generations) can be lost absent tax and succession planning. For the large real estate portfolio, liquidity is usually a major concern.
Succession planning is often the most complicated piece of the estate-planning puzzle. While tax planning has specific statutory rules and court precedents that must be followed to achieve a successful outcome, there are no official rules in succession planning and, often, no perfect solutions.
Imagine your client has an identical twin who acts just like him, likes and dislikes all the same things, shares his precise values and goals and reacts and makes decisions in the exact way your client does…this isn’t just your client’s twin, but your client’s clone…wouldn’t this immortal being be the perfect candidate to serve as trustee of your client’s trusts?