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Dec 1, 2010 12:00 PM
Family Business Succession Planning
Often misunderstood, the trust is a versatile vehicle that's well-suited for a variety of situations
The United States is on the threshold of a major demographic shift. The post-war “baby boom” generation — a group of some 78 million Americans — has arrived at, or is nearing retirement age. This generation now faces the very real necessity of planning for retirement, the end of life and a smooth transition to succeeding generations. In the context of a family-owned business, this planning will take the form of anticipating a transition in the ownership and control of the business, whether to family members or to an outside purchaser.
Succession planning for the family business presents a unique set of challenges. Particularly when ownership is to be transferred to family members (most commonly children or more remote descendants), seemingly insurmountable challenges may present themselves: The successors may lack the skills and experience to assume control, at least in the near term; differences in aptitude and interest among the members of the next generation may make equal treatment seem impossible; or the next generation's own financial or personal difficulties can weigh heavily against any transfer at all. These and other challenges may lead to the disastrous decision to forgo planning entirely.
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Topics of Interest
| Estate Tax | Donor Advised Funds |
| GSTs | Family Offices |
| Private Foundations | Life Insurance |
| 2010 Tax Act News | Industry Trends Surveys |
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