Succession planning for entrepreneurs.
For employers, addresses an effective estate planning, a number of concerns about the care of the desire for surviving relatives. Control over who is the business, the preservation of property owner facing legal charges and taxes, and liquidity of real estate taxes due shortly after the death, are just some of the most pressing problems.
The interest of their heirs should entrepreneurs plan for the orderly transferof their wealth - including their economic interests - well in advance.
Preparing for Estate Tax:
Depending on the value of the business and personal property at death, the law is that property taxes are paid on the value of the company. If you do not have enough cash on hand is possible, the heirs have no choice but to sell the company in advance whether or not the actual value.
Some employers use an irrevocable life insurance trust to purchase theirLife does not collect the benefits of death, and distribute the money based on the terms previously agreed. The proceeds can be used to pay estate taxes due, so heirs are not forced to an asset or property, or the sale of other assets, they would rather keep in the family. The use of these approaches involves a complex web of tax rules and regulations. You should consider the advice of an experienced estate planning professional before implementing such strategies.
Plan for successSuccession
A buy-sell agreement could be forged between the owners or shareholders of a company in which the terms of a buyout in the event of death or disability. It generally includes a pre-negotiated purchase price, but also explicitly require that citizens, their interests to sell to others or to specify that manage the business operations.
Payments from a trust life insurance can also be used to acquire real assets, such as the transfer of ownership of a family businessan existing buy-sell agreement.
Your company is not only your life. It 'probably the most important part of its heritage and therefore the core of wealth and security that you want to leave behind for your family. A solid estate plan can help the company overcome the difficult transition of all.
Richard Evans RL
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