When a family business owner creates a succession plan, it’s important to address whether you should separate ownership succession from management succession. Transferring ownership of assets to the younger generation as early as possible allows you to remove future appreciation from your estate, thereby minimizing estate taxes. Another reason to separate the two is to deal with family members who aren’t involved in the business. Providing heirs outside the business with equity interests that don’t confer control is often a good strategy. There are various ways to transfer business interests without immediately giving up control, including trusts, FLPs and ESOPs. Contact us for more info.
