Estate & Succession Planning for the Closely Held Business

Overview: 

Discover how you can provide an invaluable service by helping owners of closely held businesses prepare for the disposition of the business. This seminar will arm you with a wealth of proven, practical strategies and techniques you can use to:

  • Advise clients on the best ways to maximize family wealth
  • Get the most after-tax value for a business in any disposition
  • Minimize adverse estate, gift and income tax consequences

 

Objective: 

To provide a comprehensive understanding of the business, income tax and estate planning considerations relevant to any transfer of all or a portion of a closely held business. You will be equipped to pinpoint problem areas and show clients what to plan for, how to plan and why these plans are necessary.

Emphasis: 
  • What to focus on in transfers to family members and third parties
    – Federal estate, gift and income tax issues
    – Structuring alternatives
  • Long-range disposition planning and the importance of buy/sell agreements
    – What a buy/sell agreement covers and why you need it
    – Redemption vs. cross purchase agreements
    – Pricing methods
    – Life insurance and other insurance issues
  • Estate, gift and income tax consequences to buyers and sellers
    – Competing goals and interests
    – Capital gain vs. ordinary income issues
    – Compensation issues
    – Valuation issues
    – Income tax basis issues
  • Impact of anti-estate freeze rules
    – Use of non-voting stock
    – Stock recapitalizations
    – Other retained interests
    – Gift tax valuation issues
  • Lifetime sales of business interests
    – Structuring alternatives
       – Cash sales
       – Traditional installment sales
       – Self-cancelling installment sales
       – Sales for private annuities
    – Allocation of purchase price
    – Post-sale compensation arrangements
     
Bottom
Prerequisite: 

Basic knowledge of federal estate, gift and income taxation.

Preparation: 

No advance preparation required.

Level of Knowledge: 

Intermediate.

CPE Credit: 
8.00
NASBA Field of Study: 
Taxes