Business Planning Articles |
Business Succession Planning Alternatives
|
Lifetime gifts |
Bequest |
Lifetime sale |
Estate sale |
Buy-sell agreement |
|
If you want to: Sell your business interest |
Not appropriate |
Not appropriate |
You may be able to sell your business outright-but there is no guarantee |
Your estate may be able to sell your business outright-but there is no guarantee |
Buy-sell agreement can be used to guarantee the sale of your business |
|
If you want to: Give business to your children |
You can control the timing and size of the gifts |
You control the size of the gift through your will |
Not appropriate |
Not appropriate |
Not appropriate |
|
If you want to: Sell business to your children |
Can be used in conjunction with sale |
Not appropriate |
You can control timing of sale-but sale is not guaranteed |
Your child could buy from your estate-but sale is not guaranteed |
Buy-sell can be used to guarantee your child's option to buy your interest |
|
If you want to: Minimize value of your estate |
Can be used to reduce the value of your estate and maximize gift tax exclusion |
Will not minimize value of your estate |
You can control timing of sale-but sale is not guaranteed |
Value of business must be included in your estate |
Value of business must be included in your estate, but the buy-sell can help establish that value |
