A proper business succession plan must include numerous different elements, including who is entitled to take over when an owner involuntarily or voluntarily exits the business, and plans for the transfer of ownership. You may also be able to accomplish the additional goal of philanthropic goals when selling a business by consulting directly with a business succession planning attorney.
The sale of a family business in particular often represents the culmination of many years’ worth of work, but it also is a chance to give back philanthropically while also accomplishing the tax and business planning goals. Timing the sale of the stock for tax related purposes, selling to a real estate investment trust, or taking an estate tax deduction for FMV of partnership interest are three common ways in which estate planning and business succession planning can be used together in order to accomplish goals.
The support of an attorney who has been working in this field for many years can greatly increase the chances of success for those who are contemplating the best way to pass on their business interests and ensure a smooth transition for maximum effectiveness of the company.