Most successful businesses are owned by one or more families. Because they are family owned, these companies create many special planning challenges. Ownership and control do not shift among non-owner managers or anonymous shareholders. Rather, succession in ownership and management is a momentous and often highly emotional process for members of the family. Frequently, these transitions are caused by the retirement or death of members of a family member. And these transitions, if not carefully planned and delicately handled, can be ruinous, damaging the family and their company. This program will provide you a practical framework of trust and estate planning and succession planning for family businesses.
- Framework of trust and estate planning tools and techniques for family businesses
- Valuation issues for financial and tax purposes
- Buy-sell planning with family members or key employees
- Selling to third parties where intra-family succession is not possible
- Planning for the incapacity of the founding generation
- Role of outside managers to overcome family drama related to control
- Counseling clients on how to avoid family drama on succession
- Life insurance trust planning – or as a compensating asset to certain heirs
- Structuring private annuities to transfer a business and provide income to founders
- Self-cancelling installments notes and intentionally defective irrevocable trusts
- Use of GRATS and “redemptive freezes”
to review the Cancellation Policy.