Gordon J Maier & Company, LLP
Newsletter
Business Succession Planning Alternatives

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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

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Prepared by Broadridge Investor Communication Solutions, Inc, Copyright 2011