Business Succession Planning Answer Book - 2016 (U.S.)

In stock
Explores the issues that arise when the current owners of a family business wish to retire or otherwise transfer ownership of the business.
Explores the issues that arise when the current owners of a family business wish to retire or otherwise transfer ownership of the business. These issues include ensuring that the owners have enough money to retire on, providing for what will happen to the business - whether there will there be a transfer of ownership or whether the business will dissolve, providing for who will take over the management of the business and how ownership will be transferred. Discussing and resolving these issues within the family can also be complicated and contentious, depending on the family dynamics. Advice is often needed from a professional on how best to resolve these issues and set up a smooth transition of the business. Essentially, business succession can be broken down into three main categories: management, ownership and taxes. This publication discusses the distinction between management and ownership, exploring the possibility of transferring the responsibility for managing the business to one child while transferring equal shares of business ownership to all children. Business succession planning also looks at the minimization of taxes upon death. This may involve asset transfer tax strategies, for example freezing the value of the business while transferring the ownership. This publication explains how to accomplish these goals.
Chapter 1 Introduction to Business Succession Planning
Chapter 2 The Advisor's Role in Business Succession Planning
  • Assembling a Competent Advisory Team
  • Identifying the Client
  • Recognizing Conflicts of Interest
  • Ethical Issues for Attorneys
  • Overcoming Client Reluctance
Chapter 3 Non-Tax Aspects of Family Business Succession Introduction
Chapter 4 Common Goals of Business Owners
  • Securing Financial Stability for Self and Spouse
  • Leaving an Inheritance to the Family
  • Providing Employment and Opportunities for Children
  • Providing Opportunities for Key Employees
  • Establishing a Legacy for the Future
  • Appendix 4-1 The Survival Guide for Business Families
Chapter 5 Key Features of Buy-Sell Agreements for the Business Owner
  • Importance of Buy-Sell Agreements and Relationship to a Business Owner's Estate Plan
  • Types of Buy-Sell Agreements and Specific Terms to Include in the Agreements
  • Common Prohibited and Permitted Transfers
  • Common Trigger Events-When Should the Buy-Sell Agreement Apply
  • Purchase Price and Terms of Payment
  • Funding the Buy-Sell Agreement
  • Miscellaneous
  • Appendix 5-1 Buy-Sell Agreement Client Questionnaire
Chapter 6 Key Features of an Estate Plan for the Business Owner
  • Introduction
  • Drafting the Basic Plan
  • Disposition under Testamentary Instruments
  • Selection of Fiduciary
  • Special Considerations for S Corporations
  • Quasi Business Assets
  • Redemptions
  • Paying the Estate Tax
Chapter 7 Redemptions, Recapitalizations, and Restructuring
  • Redemptions
  • Redemptions Under IRC Section 302
  • Treatment of Redemptions Under IRC Section 303
  • Recapitalizations and Restructuring
Chapter 8 Transfers to Outsiders: Selling the Business
  • Getting the Business Ready to Sell: Maximizing Value
  • Kinds of Buyers (identifying Buyers)
  • Sale of Assets vs. Sale of Stock
  • Letters of Intent and Purchase Agreements
  • Special Federal Income Tax Considerations
Chapter 9 Transfers to Insiders: Employees, Management, Other Shareholders
  • ESOP Overview
  • Tax Advantages
  • Leveraged ESOPS
  • ESOP Feasibility and Implementation
  • Management Buyouts
  • Equity-Based Deferred Compensation
  • Appendix 9-1 Comparison of C Corporation ESOPs to S Corporation ESOPs
Chapter 10 Transfers to Family
  • Outright Gifts
  • Redemptions
  • Installment Sales
  • Self-Cancelling Installment Notes
  • Private Annuities
  • Grantor Retained Annuity Trusts
  • Intentionally Defective Grantor Trusts
  • Family Limited Partnerships
Chapter 11 Charitable Strategies and Business Succession Planning
Chapter 12 Valuation in Business Succession Planning
  • Reasons to Value the Business Interest During Life
  • Reasons to Value the Business Interest at Death
  • Valuation Approaches
  • Working with the Appraiser
  • Discounts
  • Interplay with the IRS and Reporting Requirements
More Information
Updates N/A
Format Book
Allow Standing Orders No
ISBN 9780808042266