Description
Learn the necessary considerations to define, execute, and implement an appropriate succession plan for a client.Whether a business owner is ready or not to move on, the manner to effectuate a successful transfer is based on a similar identifiable process. This topic provides an outline of the considerations necessary to define, execute, and implement an appropriate succession plan for a client.The process begins with a discussion of the transferor’s motivations when transferring property, whether by choice or due to unforeseen events, what to have in place in the event of a desired transfer or a forced transfer, how to value the business for transfer, and concludes with an examination of the critical tax rules implicated by the transfer.Lastly, the method of transfer can be affected by a number of factors. We will discuss which type of transfer works best in which situations, how to assure the business owner and their family can financially and personally weather the transfer, and what the estate planning and tax consequences are of a properly or improperly executed succession plan.
Date: 2023-05-03 Start Time: End Time:
Learning Objectives
Obtain Initial Information
• Reason or Motivation for Transfer
• Voluntary vs. Unforeseen
• Review Structure and Governing Documents
• Rules and Restrictions on Transfers
• Clean up Corporate Records and Organize Financial Statements
Prepare for Transfer
• State and Local Compliance
• Income and Sales Tax
• Required Regulations and Registrations
• Privacy and Non-Disclosure Agreements
• Timing of Preparation, Negotiations, and Closing
Valuation
• Timing and Aging of Valuation
• Type of Valuation
• 409A
• Estate or Gift Tax Valuation
• Fair Market Value
• EBITDA/EBITA
• Discounting
• Minority Interest or Minority Control
• To Trusts for Benefit of Family Members (IRC 2702)
Methods of Transfer
• Purchaser
• Internal vs. External
• Family
• Business Associate/Partner/Employee
• Funding
• Sale Only
• Gift Only
• Part-Gift/Part-Sale
• Advance Planning
• Buy-Sell Agreements
• ESOP vs. Buyout
• Life Insurance
• Promissory Notes
• Trusts
• IDGT
• GRAT
• SLAT
• ILIT
Conclusion
• Update Estate Documents as Necessary
• File Final Tax Returns
CLE (Please check the Detailed Credit Information page for states that have already been approved) ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.
Jennifer V. Abelaj-Jennifer V. Abelaj Law Firm, Nina Stillman – Handler Thayer, LLP
